Close the policy gap

RBI has fallen behind the curve

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will meet this week for the first time in the new fiscal year and would be expected to set the tone for FY23. The broad macroeconomic conditions — partly because of the Russian invasion of Ukraine — have changed significantly since the committee reviewed the policy in February. Global commodity prices have gone up, and now the state-owned oil-marketing companies have started passing on the increase in crude oil prices to retail consumers after a long pause, which is likely to push up the inflation rate further. The