RBI on hold as inflation outlook turns ‘adverse’
Central bank in a bind as supply problems drive up prices but growth still needs “nurturing”
The Reserve Bank of India kept rates on hold at 4% today (December 4) but hinted at growing concern over high inflation.
Governor Shaktikanta Das said in a statement that the inflation outlook had “turned adverse” in the last two months, with prices rising more than anticipated. Despite a “bumper” harvest, India is still struggling with supply problems triggered by Covid-19, which have driven up prices. Inflation is projected at 6.8% in early 2020, above the 6% upper limit of the RBI’s
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