Shumita Sharma Deveshwar

Director, India Research
+91 98718 22780

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India: RBI reinforces its independence despite softer policy outlook

Overview

By leaving interest rates unchanged at its 4 August monetary policy review despite the sluggish economic recovery in India and by keeping its focus on CPI inflation despite deflating wholesale prices, the Reserve Bank of India underscored once again its autonomy over monetary policymaking. This is particularly important given the backdrop of a recent controversy in which the government was seen as trying to clip the central bank’s wings only for the bank to emerge stronger following...

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