Our commitment in this regard is clearly defined in our own policy documents where we say our objective is to “contain perception of inflation in the range of 4.0 to 4.5 per cent in line with the medium-term objective of 3.0 per cent inflation consistent with India’s broader integration with the global economy”. Admittedly, our communication strategy is not yet best practice.
We need to work, and indeed we are working, on improving dissemination, both at technical and non-technical levels. In the dissemination, we need to explain the inflation outlook, the priority assigned to different objectives, what impact our policy actions are intended to have and how they will take us towards the stated objectives. Harmonizing monetary and fiscal policies 23.