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Macro Management | Did the RBI miss a chance to cut rates significantly?

It is important to note that the core inflation is still above the 5 percent mark and a significant demand boost would have pushed it up further.

May 10, 2019 / 07:47 AM IST
Macro Management | Did the RBI miss a chance to cut rates significantly?

The Reserve Bank of India (RBI) has faced criticism in recent times for not being able to accurately predict the inflation trajectory. Inflation forecasts are important because of the forward-looking nature of the monetary policy, especially in the inflation targeting framework. The RBI has been overestimating inflation and, as a result, policy rates have remained at higher levels. But the question is: why the central bank has not been able to predict the pace of price rise correctly? Last week...

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