Summary:
On what is the acceptable inflation rate, he says, "We had once said that 4 % is acceptable. If both countries can manage the differences, it does not have to be about India vs China, says Shivashankar Menon. Stating that there is pressure not just from the demand side but also supply, Mr.
Subbarao said, Central bank usually ignored the latter if they think it is short term. To bring about relative price change, it is believed, we have to tolerate higher inflation rates. To raise growth rates, w need to raise investments, says Mr.
Subbarao..