Economics
RBI Can Stay Accommodative Even With Rate Rises, MPC Member Says
- Real interest rates still a long way from turning positive
- MPC did not want to over-react to first inflation shock
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India’s monetary policy will remain accommodative even if borrowing costs start rising this year, according to a dovish member of the central bank’s rate-setting body, because the banking system is awash with liquidity and positive real rates are still a long way away.