The RBI seeks a new balance between growth and inflation
- It seems the RBI’s statements have been highlighting the hopes and aspirations of the economy while downplaying, or nuancing, the downsides.
The Street’s forecasts were mostly on target with the Reserve Bank of India’s (RBI’s), Monetary Policy Committee (MPC) increasing the benchmark interest rate predictably by 35 basis points (BPS) on Wednesday. This prompted even RBI Governor Shaktikanta Das to comment wryly whether this symmetry between market forecast and MPC’s rate action should be seen as the perfect monetary policy or otherwise. Seen differently, it could be a sign of the central bank heeding market exhortations over its internal economic analyses.
Login to enjoy exclusive benefits!
- Unlocked premium articles
- Personalized news
- Market Watchlist
- Insightful Newsletters & more