Current level of real repo rate raises worries of damage to growth: Jayanth R Varma

The objective of monetary policy is to control inflation with as little growth sacrifice as possible. The current real repo rate is close to 1.5% based on projected inflation 3-4 quarters ahead. At this level, there are worries about the extent of demand destruction that it will cause and the consequent damage to economic growth.

from Economy-News-Economic Times https://ift.tt/KCgluHU
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