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RBI sees inflation risks — but growth comes first
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The Indian Express
The RBI Monetary Policy Committee left the policy rate unchanged and retained its neutral stance in the August meeting.
However, even with high input-cost inflation, core inflation (excluding food and fuel) has remained relatively lower.
The RBI is likely to keep the policy rate on hold, unless the inflationary risks aggravate.
With food inflation likely to peak in Q3 FY27, the real rate of interest could turn negative temporarily.
In this fluid global and domestic environment, the central bank may prefer to remain growth-supportive.