the global economy could go back to a low inflation regime and central bankers pursuing restrictive monetary polices should keep that in mind said raghuram rajan a former governor of reserve bank of india rbicentral banks must ask themselves if their policies were nimble enough when inflation shifted from low to a high regime said rajan whos now a professor of finance at the university of chicago booth school of business we should be prepared to potentially go back to low inflation regime he said on friday in a conference organized by the bank of thailand and the bank for international settlementswe need to examine what constrained us rajan said we need to assess if we didnt recognise inflation building or we were actually waiting for our instruments to play out wanting to preserve them for the next timetherefore it is important for central banks today to pursue policies that provide for changes in inflation dynamics over time he said adding that headwinds including deglobalisation slow growth in china and kshaped recovery in emerging economies can hurt growthamid volatile times rajan said emerging market central bankers have done a wonderful job in anticipating the need to raise interest rates and it has served them well