Illustration: Binay Sinha
The minutes of the last Monetary Policy
Committee meeting, released on Thursday, has given the impression that the central bank would not cut interest rates in the near term. This has resulted in higher bond yields and could make government borrowing more difficult. Also, economic recovery will now depend more on government action.
Business Standard opinion
pieces for the day, among other things, talk about how the government is performing.
The World Bank says public debt is headed to become nearly 50 per cent greater than the desirable level, two years from now. To keep that in check, or risk a credit downgrade, fiscal policy will have to contract. At some point, the disconnect between this outlook and expansive spending pronouncements
will have to be addressed, writes T N Ninan
are very solid and the economy will surely revive as and when there is a certainty on the covid-curve stabilizing. The RBI stands battle ready, all conventional and unconventional instruments, as well as some new ones are also there on our table.”