RBI prioritizes reducing inflation to 4% over easing policy despite June's 5.08% rise.
The Reserve Bank of India (RBI) has prioritized reducing inflation to its 4% target over easing monetary policy for short-term economic growth. Inflation rose to a four-month high of 5.08% in June, but the RBI expects it to moderate close to 4% in the coming months. The central bank's neutral interest rate has increased to 1.4-1.9% in the post-pandemic era, driven by potential output growth and strengthening global economic activity.
July 18, 2024
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