RBI policymakers spar over high inflation and steep yield curve ...Qatar

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RBI policymakers spar over high inflation and steep yield curve
A debate is raging among India’s monetary panel members on the credibility of the central bank’s inflation forecasts, raising questions over its price-growth targeting regime. The argument between Michael Patra, the deputy governor for monetary policy, and JR Varma, a new member of the rate-setting panel, centres around whether the nation’s steep yield curve reveals a lack of market confidence in the Reserve Bank of India’s inflation estimates or is a reflection of excessive focus on old data. For months now, inflation has exceeded the RBI’s tolerance band and held it back from cutting rates. Instead, it introduced liquidity measures and bought bonds in an attempt to bring down borrowing co

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