RBI policy likely to address the issue of financial stability: Expert

The forthcoming Reserve Bank of India (RBI) policy is likely to address the issue of financial stability. With inflation set to stay higher than the upper band of RBI inflation target and given that inflation expectations in India are adaptive in nature, it will be a surprise if the central bank cuts again even if it’s token. 

The issue of financial stability in monetary policy has always been an unsettled issue, ever since the global financial crisis. For example, the Federal Open Market Committee, even 12 years after global financial crisis, has reached no agreement to date to change the policy