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Monetary policy alone can’t sway growth: RBI

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Guwahati: RBI (Reserve Bank of India) says monetary policy alone can’t sway growth

Monetary policy cannot affect the economy’s long-term development on its own, according to RBI Deputy Governor Michael Patra.

He emphasised the difficulties facing monetary authorities. According to Patra, the aim variables of inflation and growth are opaque because the former are one month old, while the latter are at least three months old.

Speaking at the RBI Conclave, Patra reportedly stated that communication has grown to be a crucial weapon in the toolbox of central banks. This was reported in the Times of India. He claimed that the central banking toolbox includes communication. He continued by saying that global central banks, including those in the US and UK, were increasingly using communication to conduct “Policy Pivots.”

The “policy pivot,” which involves raising interest rates by 75 basis points (100 bps = 1 percentage point) and then persuading the markets that the next monetary meeting would be dovish, has recently captured the attention of the general public.

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