Monetary policy is usually formulated under the shadow of various influences. An undertow of anxieties marks the central bank’s monetary policy. A perceptible economic slowdown since the last bimonthly monetary policy in December and a palpable change in tone, largely bordering on the cautious, colour the current monetary policy document. Private investment continues to remain a reluctant participant in the economic growth process. The Indian financial system’s gummy transmission channels famously display an asymmetric response to monetary policy stimulus.

Source: Mint February 07, 2019 17:26 UTC