Bureaucratic hassles at lower levels continue to be irritants for the business community. Tax reforms: Taxation reform has figured prominently on the government's agenda, as this is another area where the business community has innumerable grievances and dissatisfaction with the arbitrary nature of tax administration.
Consequently, the optimal monetary policy response cannot be determined on the basis of a simple rule relying on a measure of core inflation; it depends on the size, nature and persistence of shocks affecting the economy. And such shocks cannot, in general, be identified and their effects cannot be adequately assessed only by using a measure of core inflation.