Agency, New Delhi
Published by: Dev Kashyap
Updated Mon, 27 Jun 2022 06:50 AM IST
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Expansion
RBI’s Monetary Policy Committee (MPC) member Jayant R Verma said the pandemic was the biggest test for the monetary system. The Indian economy has barely recovered from this outbreak. Therefore, we must be careful to ensure that economic growth is not sacrificed unbearably in an attempt to contain high inflation.
Keeping a cautiously optimistic outlook for the economy, Verma said economic growth prospects for 2022-23 and 2023-24 are reasonable despite geopolitical tensions and high commodity prices persisting for a longer period. Under pressure to control rising inflation, RBI has taken a tough stand. The repo rate has been increased by 0.90 per cent since May this year. This has pushed the repo rate to a two-year high of 4.90 per cent.
It will take time to return to the path of high growth
Verma said, the global economy is facing significant constraints. In such a situation, it will take some time for the world to get back on the path of high growth.