Saugata Bhattacharya, member of the Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC), says while high-frequency indicators suggest continuing economic resilience, they indicate a loss of momentum, which is the reason for a lower growth projection for FY27 as compared to the previous year. In an interview on the phone with Manojit Saha, Bhattacharya, based in New Delhi, says the outlook for the growth-inflation balance remains clouded even after the West Asia peace treaty. Edited excerpts:
In the minutes (of the June meeting of the MPC) you said the outlook on the growth-inflation tradeoff was clouded. With brightened prospects of the end of the war, do you think clarity has emerged on the tradeoff?
