“The Reserve Bank maintains that interest cost is only one of the several factors that have dampened growth, and the increase in policy rate by the Reserve Bank alone cannot explain the investment slow down.” This defensiveness is a bit odd—isn’t slowing growth and demand in the economy the whole point of raising rates? And if there are other factors holding back growth, shouldn’t the central bank take account of them and adjust its monetary stance accordingly?.........
No comments:
Post a Comment