................If it has to choose between growth and inflation, the central bank should try to first curtail inflation. There is enough evidence from economic history that a central bank's first mandate is inflation control as it can be very difficult once inflationary expectations get anchored at the wrong level. This is particularly true when the constraint to growth is not demand but supply side issues. It is not the central bank's job to revive growth if there are supply side constraints and the economy has an inflation problem. Broader economic measures are needed to resolve this situation and RBI cannot resolve all national problems through monetary policy..............
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