» India: Is the RBI Behind the Curve? Decision Economics

India: Is the RBI Behind the Curve?

Posted February 15, 2012 by Editor

[private]

  • All evidence on the economy points to the need for a significant monetary-policy easing in India.  The evidence also suggests that the potential costs of such policy in terms of inflation-risk are extremely low at present.  Put simply, the balance of risks has tilted quite transparently in the direction of recession-risk, and there is in fact a non-negligible chance that the central bank may be behind the curve in a manner that could be very noticeable in the coming months.

2-15-12–EMG INDICATORS AND INSIGHTS _India’s Inflation and Monetary Policy_[/private]