In fact, the inflation objective or the target level of inflation for monetary policy should be lower than the inflation threshold, considering the existence of significant lags in the transmission of monetary policy measures and the costs of inflation. Historically, India has been a moderate inflation country in the context of EMEs and other developing economies.
Yet cross-border provision of services in the EU remains difficult. While 70% of the EU’s GDP is generated in services, only 20% of services are provided cross-border. Up to 1.8% in additional growth could be unleashed for the EU with the full implementation of the Services Directive.