........Eventually, high food inflation hits the overall economy and prompts the Reserve Bank of India to raise interest rates to suppress prices. Currently, high interest rates have made borrowing costlier for firms, which do much of their business on short-term loans. "There are blunt instruments which can bring down inflation but also dampen growth. But we don't have a consensus on how much of dampening of growth is acceptable to bring down inflation," Kaushik Basu, India's chief economic advisor, said.......
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