People inhabiting the real world act, react and respond to the evolving situations in inexplicable, unpredictable and often capricious ways, and the only way to capture that real world sociology and psychology as it translates to economic trends is through collection of reliable and relevant data and analyzing and interpreting that data.
Statistical analysis therefore has to be an increasingly important support system for our policy formulation. Statistics in RBI’s policy making Let me now move on from the big picture to the world of RBI. Needless to say, statistical analysis is critical to RBI’s policy formulation. We face many challenges and dilemmas in this area.