The Ministry of Finance states that it is encouraging that the Reserve Bank of India (RBI) has taken note of the structural change in the outlook for inflation. Responding to the Monetary Policy Statement issued by the RBI today, the Ministry states that the Government looks forward to the RBI supporting the revival of growth and employment. In the weeks ahead, the Government and RBI will work towards a monetary policy framework that will help institutionalize the gains achieved on the inflation front, so as to reduce inflationary expectations and further support the revival of investment and growth, the Ministry added.

Monetary policy framework coordination seeks to institutionalize inflation gains and support revival of investment and employment. Expectation of central bank support for economic revival and employment through coordinated monetary policy action, and collaborative development of a monetary policy framework to institutionalize inflation gains, reduce inflationary expectations, and support renewed investment and growth.