A long pause

Central bank communication will be crucial

After a few difficult years, the central bank’s monetary policy committee (MPC), which is meeting this week, will find itself in a comfortable position. Economic growth has been better than expected with a decline in the inflation rate. The numbers released by the National Statistical Office last week showed the Indian economy expanded 7.2 per cent in 2022-23, as against the official projection of 7 per cent. It would also be comforting for the MPC that higher than expected economic growth, according to economists, may not push up the inflation rate because it is being driven largely by investment. The