It is clear that the “off-cycle” decision by the RBI’s monetary policy committee to raise the repo rate and make other adjustments to money supply has been prompted by the uncomfortable trajectory of inflation. But this fact was well known at the time of the April meeting, so what stopped the MPC then is a puzzle. Had the RBI accounted for consistent inflationary pressures and maintained the needed balance between the objectives of supporting growth and maintaining price stability, it would have avoided an emergency rate hike, the top edit argues. Read it here
In other views:
The second edit
points out that any euphoria over robust export growth in April must be tempered by the fact that high commodity prices will push up the trade deficit too. Read it here
S Mahendra Dev
assesses the potential for India’s agri-exports against the backdrop of the Russia-Ukraine crisis and beyond. Read it here
explains why the Dam Safety Act and associated rehabilitation programmes could mark a new era of professional management for India’s 5,745 dams. Read it here
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