Tackling inflation : M G Warrier

Tackling inflation The Editor The Hindu Business Line Letters December 15, 2022 Tackling inflation* This refers to the report "Govt working to lower inflation further" (The Hindu Business Line, December 15). Viewed from the present urgency for RBI to get better results in inflation control, Nirmala Sitaraman's optimistic observations on GOI's efforts 'to lower inflation further' have come at the right time. RBI had hinted at the inflation figures remaining on the wrong side of the old target for some more time. The responsible statement coming from FM about fiscal policy support for inflation control will allow RBI to focus focus more on monetary policy measures rather than "doing homework" to explain reasons for not adhering to the target. Fortunately, RBI and GOI are on the same page, and the journey has been smooth, so far. The post-pandemic global scenario and the growth expectations within the country do not augur well for more stringent monetary policy measures to control inflation. RBI, complying with a requirement, had appraised GOI in November about the action in progress on the inflation front. Now one feels confident that some supportive fiscal policy initiatives to control inflation and promote growth will find expression in the February 2023 budget. Next MPC meeting will be after fiscal policy response to RBI's monetary policy initiatives. M G Warrier Mumbai *Slightly edited version published in The Hindu Business Line on December 16, 2022


Popular posts from this blog


The King of Ragas: Sankarabharanam