Yet, the exchange rate of the rupee is often singled out of all the key macro-economic variables and blamed for all the sins in the economy. What about the inordinate, unrelated-to-productivity 4/7  BIS central bankers' speeches  increases in wages and salaries at regular intervals that also undermine competitiveness of the economy? Don’t they impact on the exchange rate of the rupee?
BIS central bankers’ speeches  1  fulfil his political mandate, and we do not shy away from taking bold decisions to fulfil our price stability mandate. Why did we act in June? Prior to our June decision, the euro area inflation rate had fallen by two-thirds in less than a year.