 "RBI, Reserve Bank of India")
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
