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Expansion
After the relief on the inflation front, instead of controlling the prices, the government can now focus on the economic growth rate. In such a situation, the RBI can also stop the pace of increasing the policy rates in the meeting of the Monetary Policy Committee (MPC) to be held from 6 to 8 February. This will help in increasing the growth rate.
Officials said, fears of a global recession are likely to dent economic reforms. In such a situation, there is increasing concern in the government about the need to provide more assistance. Moreover, two out of six members of the MPC are also in favor of supporting the growth rate. RBI has increased the repo rate by 2.25 per cent since May this year.
Growing concern about the growth rate
The government has supported the RBI in its fight against inflation, said an official. Several measures have also been taken to reduce the prices of other commodities including crude oil. However, now there is increasing concern about the growth rate. Finance Minister Nirmala Sitharaman has also said that we will bring down inflation further for the sake of the common people. The government is constantly monitoring the situation of prices of essential commodities.
