Tuesday, 4 July, 2023

RBI Deputy Governor Highlights Challenges of Lagged Data in Monetary Policy Making

The Deputy Governor of the Reserve Bank of India (RBI), Michael Debabrata Patra, expressed concerns about the limitations of lagged data in monetary policy making, likening it to flying blind. Patra emphasized that the time lag in receiving economic data hampers policymakers' ability to make timely & accurate decisions. The reliance on historical data poses challenges in the rapidly evolving economic landscape, calling for the adoption of more real-time and forward-looking indicators to enhance.