BasisPointInsight.com - RBI Sitting on 100 bps of Policy Space by Barendra Kumar Bhoi If inflation stays near 2.5% and growth around 6.7%, the Taylor rule implies nearly 100 basis points of policy space for the RBI to cut rates. by Barendra Kumar Bhoi, BasisPointInsight.com

2/4 Yet, the Monetary Policy Committee continues to hold at 5.5%, keeping real interest rates high and credit growth sluggish.

#PolicySpace #FinancialStability #CreditGrowth

4/🔒 Fixed exchange rates can limit a nation's policy space. MMT recognises that countries with fixed rates face more constraints than those with floating rates. #FixedExchangeRate #PolicySpace