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Q.
Will RBI's rate policy actually cool inflation without hurting growth?
20 sec read
What happened
The Reserve Bank of India has been balancing interest rate decisions against both inflation and growth concerns. Economists are split on whether the current approach will bring prices down without slowing credit growth and investment. Households are watching EMI costs closely, while businesses are watching borrowing costs for expansion.
What the evidence says
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Inflation has moderated from recent highs, but remains above the central bank's comfort range in several categories.
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Credit growth to small businesses has slowed in recent quarters.
What's unclear
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Whether the current rate path will be sustained or reversed depends on global commodity price trends.
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