RBI gives growth a chance, parking inflation worries for the moment
- To pull the plug on growth at a time when the economy is just recovering would have flushed away the gains of the first eight months of RBI’s pandemic fight
Both bond and stock markets were waiting with bated breath for RBI Governor Shantikanta Das to indicate if inflation was going to be more important or growth on the morning on December 4. While nobody expected policy rates to be reversed, the market was watching every word that could indicate the central bank was turning hawkish – an experience of past pain when earlier RBI governors pulled back just when the economy needed some more continued oxygen of liquidity.
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