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Inflation Spike May Push MPC Towards ‘Policy Normalisation’ By Year-End
With inflation spiking, India's MPC may find it tougher to look the other way. Is "policy normalisation" coming closer?
The Reserve Bank of India has spent the past year firefighting the economic crisis brought on by the Covid-19 pandemic. In doing so, growth has been the single-point focus for the central bank. Interest rates were cut, the financial system was flooded with money, incentives were given to channel that money to those that need it, support was provided to ensure the government can borrow comfortably to spend.Along with the rest of the w...
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