Quote on Monetary Policy 08th December 2021 By Deepthi Mathew, Geojit Financial Services
Below is quote on Monetary Policy 08th December 2021 by Deepthi Mathew, Economist at Geojit Financial Services.
"The decision to keep the rates unchanged was on the expected line. Though the economy is recovering, it is early to say that it is a broad-based recovery, which still requires support from the Central Bank. The growth-inflation trade-off is getting prominent in the global economy. The rising inflation rate has forced various central banks to increase the pace of monetary policy normalization. However, there hasn't been any considerable revision on the inflation forecast by RBI and maintained it at 5.3 percent for FY22. As the favorable base effect wanes off from November'21, we could expect some upward pressure in the inflation rate in the coming months"
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