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Economists see the Reserve Bank of India grin and bear price pressures as it seeks to help Asias No. 3 economy recover from one of the worlds worst coronavirus outbreaks. ....
Indian monetary policy makers’ intolerance for an inflation rate higher than their 4% medium-term target will probably only stay on paper. In reality, economists see the Reserve Bank of India grin and bear price pressures as it seeks to help Asia’s No. 3 economy recover from one of the world’s worst coronavirus outbreaks. The RBI has chosen to look through a recent surge in inflation because it was supply-side driven, and will only turn persistent when demand kicks in, Deputy Governor Michael Patra said at a briefing June 4. While the wholesale price print due later Monday will probably make for another grim reading, retail inflation is seen hovering above the 5% mark for the third out of five months this year. Monetary policy makers ignored the acceleration and earlier this month retained an “accommodative” stance for as long as needed to restore growth on a durable basis. ....
The RBI has chosen to look through a recent surge in inflation because it was supply-side driven, and will only turn persistent when demand kicks in, Deputy Governor Michael Patra said at a briefing June 4 ....
Indian Policy Makers Seen Tolerating High Inflation for Growth bloombergquint.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bloombergquint.com Daily Mail and Mail on Sunday newspapers.