Any potential action needs to be viewed in a context where the balance of risks to fulfilling our objective is on the downside. Certainly, the time horizon for central banks to normalise inflation cannot be pre-set, by statute, unconditionally.
Policy making invariably involves taking measured risks in the face of uncertainty. Clearly, we do not want to be in the position we were in August 2013 ever again. Macroeconomic stability is of paramount importance for India. Equally clearly, drawing from this experience, the central bank must have the resources, the knowledge, and the professionalism to act when the situation warrants.