RBI's ambivalence risks failure on inflation as well as growth
The resolution was completely silent on the letter to the government detailing why the RBI had failed to keep inflation within the target band for three consecutive quarters.
The just concluded meet of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) is noteworthy for reasons that go well beyond the immediate, one of them being its oblique hint of the beginning of a ‘pivot’ (reversal in policy). So, even as it reduced the pace of increase in the policy repo rate to 35 basis points (taking the repo rate to 6.25%), rather than 50 basis points, as in the three previous meetings commencing June 2022, the meet was marked by several ‘firsts’.
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