RBI's challenges

As growth recovers, it will need to address other policy issues

The Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC) on Friday decided to leave the policy rate unchanged, as was widely expected, in its last policy review of 2020. The committee also revised its inflation and growth forecasts, and both surprised on the upside in recent months. The committee expects the Indian economy to break out of contraction in the current quarter and post a positive growth rate of 0.1 per cent, followed by another expansion of 0.7 per cent in the next quarter. Its view on inflation has changed significantly compared to the last meeting. The MPC now