Larger mandate for RBI is growth, job creation: Chidambaram

Reserve Bank of India must focus on growth and job creation instead of just targeting price stability in deciding monetary policy, Finance Minister P Chidambaram said today.
"The mandate of price stability must be seen as part of the larger mandate and the larger mandate is growth and employment," he said in the Rajya Sabha while replying to a debate on state of economy.
"Yes the mandate of central bank traditionally is price stability. In fact there are many who would argue that should be only goal of the central bank. But I believe, my party believes, my government believes that price stability must be seen as part of the larger mandate of growth and employment," he said.

Making reference of US President Barack Obama statement about expectation from next chief of the central bank, the Finance Minister said "Obama two weeks ago said my next Fed chairman must have two objectives one is price stability and other one is employment."
Chidambaram made a case to build a consensus on the the issue of larger mandate for the RBI so that a clear message can be sent.
"I wish each party takes stand on this. Let Parliament take a stand on this so that the message will go to the country so that message will go to the central bank that price stability is important it is primary mandate of central bank but it is part of the larger mandate of promoting growth and employment," he said.