RBI 'behind the curve' critique: Deputy Guv. Patra asserts 'approach has served us well'
The Hindu
Deputy Governor Michael Patra pointed out that the GDP is set to grow by 9.2% in FY22 after a 7.3% contraction in FY21.
Addressing criticism of the RBI being "behind the curve" by continuing with the accommodative stance longer than other countries, Deputy Governor Michael Patra on Friday said "the approach has served us well".
India is placed "much better" to deal with future waves of the pandemic as compared to being affected the worst in the first after the nationwide lockdown, he said, expressing concerns on inflation being elevated due to crude prices.
It can be noted that the RBI has been critiqued in some quarters for being 'behind the curve' by holding on to its GDP growth-enhancing accommodative stance, even as the pressures on its core objective of inflation become evident and at a time when many of its peers have shifted to rate tightening. Those making such calls have been suggesting that the central bank shift its policy stance to neutral.