High Inflation, Weaker Growth: Finance Minister And RBI Should Stay The Course With A Minimalist Approach

India’s retail inflation print of 7.79 per cent in April is likely to call for more fiscal and monetary measures to combat it, and cool things down. The truth is there is limited scope for policy to make things “normal”, when there are so many moving parts in the global and Indian economies.

Globally, we have geopolitical uncertainties created by the Russia-Ukraine war and the mindless US-led sanctions and efforts to prolong the war by supplying Ukraine with more lethal weapons. Then we have the US Fed raising interest rates and shrinking its balance-sheet, again due to inflation careening out of control.

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