The combined fiscal-monetary risks and climate change related risks can trigger an irreversible threat to the global economy. Against this backdrop, the RBI Governor has judiciously conducted his policy rate manoeuvring, with majority votes for the decision of status quo in policy rates. This RBI decision is welcome, despite all the trade-offs it entails
With growth projections improving and inflation expected to be benign, the change in stance from “withdrawal of accommodation” to neutral, is the first step in the direction of an interest rate cut.