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Policy prudence

RBI should guard against risks to financial stability

Topics
Inflation | Reserve Bank of India | monetary policy committee

Business Standard Editorial Comment 

The Monetary Policy Committee of the Reserve Bank of India (RBI) will meet next week to review the policy. Given the state of the economy, the policy decision for the rate-setting committee will not be easy.

While the incoming data suggests that the economy is in deep trouble and would need more policy support, inflation based on the consumer price index continues to remain above the target band of the central bank. Prices have not collapsed — as some economists were expecting — because of the lockdown and restrictions on movement to contain the spread of Covid-19. The shutdown ...

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First Published: Wed, July 29 2020. 23:41 IST
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