The current situation of the Indian economy and gigantic mismatch of fiscal decisions in contrast to the apex bank portrays a similar situation and are thus costing efficiency and seeping sluggishness.
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The Policy Monitor
The current situation of the Indian economy and gigantic mismatch of fiscal decisions in contrast to the apex bank portrays a similar situation and are thus costing efficiency and seeping sluggishness.
The simplified bottom line is here. While slow growth with high inflation suggests supply side rigidities, slow growth with inflation below target suggests demand weakness.
The decision taken by the Central Bank on Thursday, 7th of February not only did surprise economists but market watchers as well. Whereas the unanimous decision of changing the monetary policy stance from ‘calibrated tightening’ to ‘neutral’ seemed plausible, the cutting of the repurchase rate by 25 basis points didn’t […]