Presently, Indian Economy is facing paradoxical situation of Lower GDP growth rate and Higher rate of
Inflation. Such a situation has led to dilemma before the RBI as to whether should it focus on controlling
inflation or should it focus on boosting GDP growth rate.
In its latest monetary policy stance, the RBI has decided to keep the policy rates unchanged and continue with
the accommodative policy stance.
In this regard, let us understand the rationale behind RBI's Monetary policy stance.
