<p>Former RBI Deputy Governor Rakesh Mohan on Monday pitched for changing the central bank's inflation target band of 2-6 per cent, saying inflation will not take off as long as the government is doing proper macroeconomic management.</p>.<p>Under the current dispensation, the RBI has been mandated by the government to maintain retail inflation at 4 per cent with a margin of 2 per cent on either side.</p>.<p>The six-member Monetary Policy Committee (MPC), headed by the RBI governor, decides on the policy rates keeping this target in mind.</p>.<p>"Given the monetary policy framework these days, in some sense I would say why not change the (retail inflation) target to 5 per cent not 4 per cent? You are not going off to 10 per cent etc," Mohan said while participating in a virtual event organised by the Centre for Social and Economic Progress (CSEP).</p>.<p>The current medium-term inflation target, which was notified in August 2016, ends on March 31. The inflation target for the next five years starting April is likely to be notified this month.</p>.<p>"And suppose you have 5 per cent (retail) inflation target and 7 per cent growth (target), that is something one can realistically think about it.</p>.<p>"Because we have done it before, inflation does not take off as long as you are doing proper macroeconomic management," he opined.</p>.<p>Mohan also said migration in India is relatively small compared to other countries like China and the US.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/national/inflation-remains-low-in-last-7-years-govt-962688.html" target="_blank">Inflation remains low in last 7 years: Govt</a></strong></p>.<p>Also participating at the event, former chairman of the National Statistical Commission, Pronab Sen said bare necessities would be bad metrics to measure inequality.</p>.<p>Indian Institute of Management,(Ahmedabad) Assistant Professor Chinmay Tumbe said more people from Uttar Pradesh and Bihar are going to Gulf countries than from Kerala in the last five years.</p>
<p>Former RBI Deputy Governor Rakesh Mohan on Monday pitched for changing the central bank's inflation target band of 2-6 per cent, saying inflation will not take off as long as the government is doing proper macroeconomic management.</p>.<p>Under the current dispensation, the RBI has been mandated by the government to maintain retail inflation at 4 per cent with a margin of 2 per cent on either side.</p>.<p>The six-member Monetary Policy Committee (MPC), headed by the RBI governor, decides on the policy rates keeping this target in mind.</p>.<p>"Given the monetary policy framework these days, in some sense I would say why not change the (retail inflation) target to 5 per cent not 4 per cent? You are not going off to 10 per cent etc," Mohan said while participating in a virtual event organised by the Centre for Social and Economic Progress (CSEP).</p>.<p>The current medium-term inflation target, which was notified in August 2016, ends on March 31. The inflation target for the next five years starting April is likely to be notified this month.</p>.<p>"And suppose you have 5 per cent (retail) inflation target and 7 per cent growth (target), that is something one can realistically think about it.</p>.<p>"Because we have done it before, inflation does not take off as long as you are doing proper macroeconomic management," he opined.</p>.<p>Mohan also said migration in India is relatively small compared to other countries like China and the US.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/national/inflation-remains-low-in-last-7-years-govt-962688.html" target="_blank">Inflation remains low in last 7 years: Govt</a></strong></p>.<p>Also participating at the event, former chairman of the National Statistical Commission, Pronab Sen said bare necessities would be bad metrics to measure inequality.</p>.<p>Indian Institute of Management,(Ahmedabad) Assistant Professor Chinmay Tumbe said more people from Uttar Pradesh and Bihar are going to Gulf countries than from Kerala in the last five years.</p>