Going into the half yearly review of the monetary policy for the current fiscal year, the Reserve Bank of India (RBI) is faced with a macroeconomic environment characterized by high and rising benchmark wholesale inflation, stabilizing growth momentum with signs that economic activity has bottomed, a stable-yet-weak currency, easing commodity prices and slowing global growth. While this macroeconomic backdrop has largely been in place over recent policy reviews, there is a key difference this time around..........
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