..........These two factors clearly influence the balance between inflation risks and growth payoffs in the current scenario. Under the circumstances, the RBI's decision is certainly not a no-brainer. Even before the rupee began its decline, the RBI governor had said he saw limited room for easing, which has now been further constrained. The question facing the RBI is whether whatever room remains now should be used up as soon as possible, or preserved for a shift in the risk-payoff balance.........
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