Best of BS Opinion: RBI monetary policy, macroeconomic analytics, and more

Here are the top BS Opinion articles of the day

Here is the best of Business Standard's opinion pieces for Friday

The Reserve Bank of India (RBI) has postponed the next step in normalising monetary conditions. In its first meeting after the Union Budget, the RBI’s Monetary Policy Committee decided to keep the policy rate and stance unchanged. While this much was on expected lines, the RBI also decided to leave the reverse repo rate untouched. It is not clear what restrained the RBI. As our lead editorial notes, in the given global and domestic economic environment, excessive monetary policy accommodation for an extended period could end up undermining prospects for higher sustainable growth. Read here   

There is absolutely no basis to argue, from an analytical perspective, that an increase in public investment, at the expense of other spending, has a positive multiplier effect, argues economist Rathin Roy. Read more

The government showed courage in not heeding calls for massive fiscal spending in the wake of the pandemic and focusing instead on liquidity support, writes T T Ram Mohan. Read more

QUOTE OF THE DAY

 

“We, in the Reserve Bank, have remained steadfast in our commitment to safeguard trust and confidence in the domestic financial system as we rebuild the foundations of strong and sustainable growth with macroeconomic stability.” 

 

RBI Governor Shaktikanta Das