India: Limited role monetary policy can play in tackling weather-related inflation, economist says
She says the central bank would be better off addressing the problem through "targeted" fiscal measures.Rao says the government could give cash transfers to people in need or subsidize food.DBS Bank's Radhika Rao believes that using monetary policy to address food inflation, worsened by weather con
Radhika Rao from DBS Bank in Singapore, said that "Monetary policies are a very blunt instrument to use to target food inflation." "The key is to make sure the fiscal measures are correct. Rao stated that the government must do more to improve supply. We need to find out if the government can make more land available for agriculture and if they can change how food is transported.