Analysis: RBI's overdrive to tame inflation may backfire

Abstract

It is clear that the second quarter review of the monetary policy has been prepared in a backdrop of very difficult times, both globally and domestically. The IMF had recently revised downwards global growth rate implying a difficult market for our exports. The inevitable has happened but it was expected. In fact, the macroeconomic and monetary developments released yesterday had already prepared the market for the inevitable. So, the repo rate has been raised twice within a period of six weeks though some fine tuning has been done on the marginal standing facility. The war with inflation has been raised to a higher level. But will it lead to expected results? Not likely. Read more at: https://www.moneycontrol.com/news/business/economy/analysis-rbis-overdrive-to-tame-inflation-may-backfire-1631485.html