Duvvuri Subbarao, the governor of the Reserve Bank of India, on Friday launched a scathing attack on inflation targeting and challenged the view that central banks could regain their independence post-crisis.

Subbarao told an audience in Mumbai: "The unravelling of the Great Moderation during the crisis has diluted, if not dissolved, the consensus around the minimalist formula of inflation targeting."

He added: "The mainstream view before the crisis was that price stability and financial