Growth Pangs Gain Precedence for India’s Inflation-Targeting RBI

The economic disruption caused by the Covid-19 pandemic has brought growth concerns to the top of Indian monetary policy makers’ priority list, and relegated the inflation goal to a secondary position, minutes of their meeting show.
The pivot for growth boosts the odds that interest rates will stay lower for longer to ensure the economy’s recovery takes hold. The six-member Monetary Policy Committee earlier this month left the benchmark repurchase rate unchanged for a sixth straight meeting, even as the Reserve Bank of India expanded its version of the quantitative easing program to spur economic activity.