RBI's policy responses to support economy weren't very impactful: Study

At best, the RBI stopped a sharp spike such as the one witnessed after the global financial crisis

The Indian central bank’s conventional as well as unconventional policy responses to support the economy through the pandemic failed to reduce the government’s borrowing costs by a lot, says a new study.
 

Policy actions by the Reserve Bank of India have had only a modest impact on the ‘term premium’ –- an indicator of the market’s expectations of future interest rates, according to the research authored by Rajeswari Sengupta of the RBI-funded Indira Gandhi Institute of Development Research in Mumbai, and Harsh Vardhan of the SP Jain Institute of Management and Research. There were limits to which monetary policy alone