RBI MPC Member Says that Sacrifice of Economic Growth to Control Inflation. is not Appropriate

Jayant R. Verma, member of the Monetary Policy Committee (MPC) of the country's central bank Reserve Bank of India (RBI), has said that the sacrifice of Economic Growth to control inflation. is not appropriate. He said that the pandemic was the biggest test for the monetary system. The Indian Economy has barely recovered from this outbreak.

He said that in such a situation, we should be careful and ensure that economic growth is not an unbearable sacrifice in an attempt to control 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 remaining for a longer period. Under pressure to control rising inflation, the Reserve Bank has taken a tough stand. The repo rate has been increased by 0.90 percent since May this year.

This has pushed the repo rate to a two-year high of 4.90 percent. Verma further said that the global economy is facing significant constraints. In such a situation, it may take some time for the world to get back on the path of high growth.