Taking into account the newly identified supply-side factor, that is, constraints on inflation resulting from the rise in labor productivity, there is a reason to believe that it is not appropriate to be fixated on the fact that the price stability target has not been achieved nor to attempt to resolve this through additional monetary easing.
Before going into the nuances of the new priority sector guidelines, I would like to highlight the four basic pillars/philosophy upon which these guidelines are based. These are: •  Priority sector refers to those sectors of the economy which, though viable and creditworthy, may not get timely and adequate credit in the absence of this special dispensation.