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Expect RBI to take a pause, forward guidance by the MPC may be open ended

Rate hikes, subsidies and price caps are temporary and symptomatic fixes to structurally high inflation. This is not to suggest that RBI should look to ease monetary conditions, but that given enough time, existing monetary policy is already restrictive enough to address our current inflation situation 

April 05, 2023 / 08:49 IST
Expect RBI to take a pause, forward guidance by the MPC may be open ended

Unlike its peers, RBI is ahead of the curve in fine-tuning both the price and size of the money in the economy

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