RBI and Ministry of Finance
- Monetary policy and Fiscal policy should in sync to review the economic growth of the country, but recent increase of key policy rates by RBI has been a bone of contention between RBI and Finance ministry.
- Ministry of finance argues increase of key rates would impact investments and growth in general but RBI says it’s(increasing key rates) the best way to decrease the rising inflation which is harming the economic growth.
- RBI says it has to bring down the retail inflation to 8% and 6% in 2015 and 2016 respectively.
- RBI also said if inflation comes down, economic growth will be subsequent and sustainable.
- Monetary policy
- Fiscal policy
- Reserve Bank of India (RBI)