How Covid-19 disruptions and food inflation have worsened RBI's trilemma
In India, with supply chain disruptions and food prices pushing inflation stubbornly above target, handling the trinity is looking tougher
Shaktikanda Das | Virbhadra Singh
Aditi Phadnis |
Last Updated at October 28, 2020 19:18 IST
In India, with supply chain disruptions and food prices pushing inflation stubbornly above target, handling the trinity is looking tougher for the central bank and its leader, Shaktikanta Das, who tested positive over the weekend for Covid-19.
The Reserve Bank of India has signaled that letting the rupee strengthen is the least bad option as the economy shifts from being a global growth hotspot to a coronavirus hotbed. The inflation spike prevented the RBI from cutting interest rates at its past two meetings, despite the economy forecast to shrink 10.3% in the year to March 2021 -- the ...
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First Published: Tue, October 27 2020. 12:54 IST