Processing .....please wait.. 
The article has been forwarded.... 
India is less vulnerable to global shocks: RBI
By agencies
|
Tuesday, 07 June 2005, 19:30 IST
MUMBAI: The Indian economy has built up resilience to shocks and is now less vulnerable to output volatility, according to Reserve Bank of India (RBI) governor YV Reddy.
The economy has also been largely insulated from episodes of financial instability, he said at the eighth meeting of the Bank for International Settlements (BIS) working party on monetary policy in Asia.
Barring supply shocks, particularly due to global oil prices, inflation, especially core inflation has been fairly low. Core inflation is the rate of change of the headline Consumer Price Index (CPI) after excluding food and energy items.
Headline inflation refers to the year-on-year change in overall CPI. Reddy said that with the enactment of the Fiscal Responsibility and Budget Management Act, there has been greater flexibility in the conduct of monetary policy.