International Monetary Fund (IMF) Chief Christine Lagarde, however, favoured continuing of unconventional monetary policy in countries where inflation is very low.

Minister of State for Finance Sinha said it was important that nations across the region pursue policies that are much more coordinated than they are right now.

He called for "very careful thinking" on more coordinated fiscal expansion.   

Reserve Bank Governor Raghuram Rajan had on Sunday called for a system for assessing the wider impact of monetary policies of global central banks, including unconventional tools and their spillover effect, and colour codes for rating them.

Rajan has been critical of moves by Central Banks to lower interest rates to meet domestic demands, ignoring the impact it would have on the global economy.

Lagarde said the position of the IMF on unconventional monetary policy has been that they "should be continued in those countries where inflation is very low and where monetary policy is accompanied by other measures taken by policy makers in fiscal and structural reforms."

Stating that Rajan always has interesting proposals, she said unconventional monetary policy "is fine provided that inflation is low, fiscal measures are taken, structural reforms are adopted".

Lagarde and Sinha were jointly addressing a press conference at the conclusion of the three-day Advancing Asia Conference, co-hosted by India and IMF here.

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