News > When does a Central Bank succeed most in volatile, uncertain environments?

When does a Central Bank succeed most in volatile, uncertain environments?

The post-COVID surge in headline inflation was too short-lived to affect consumers. That should be a huge relief for RBI, which has been cutting interest rates for the past 3 years to reduce inflation without causing an economic meltdown. This is in line with the advanced economies' monetary tightening. Without its independence, RBI could not make this tough call under the VUCA, or volatility, uncertainty, complexity, and ambiguity time.