Why in news RBI Governor Sanjay Malhotra said the monetary policy committee felt it was time to support economic growth as inflation conce...
Why in news
RBI Governor Sanjay Malhotra said the monetary policy committee felt it was time to support economic growth as inflation concerns ease.
Primary goal of RBI: Focus on inflation and price stability while also supporting growth.
Inflation is expected to go down, but RBI will keep a neutral stance to respond to changing macroeconomic conditions.
On the rupee's depreciation, Malhotra emphasized focusing on long-term trends instead of short-term volatility.
A weaker rupee affects inflation but is linked to global uncertainties, which can hurt growth and investments.
The fiscal deficit is lower than expected at 4.4% of GDP, helping inflation control.
Malhotra is optimistic about India’s growth and believes a 7%+ growth rate is achievable.
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