Don't depend on MPC alone

Maintain balance between growth and financial stability

The first advance estimates of gross domestic product for the current year, released by the government on Tuesday, showed that growth in the Indian economy will slow to 5 per cent, compared to 6.8 per cent last year. Since most high-frequency indicators suggest that a sharp rebound is unlikely in the near-term, stakeholders are looking for policy support. While it will take a few weeks to know to what extent the government is willing to support growth through the Budget, markets have been hoping that after a pause in December, the Reserve Bank of India (RBI) will lower policy interest