Niti Aayog's Lahiri flags growth risks in case of further monetary policy tightening
In India, it's essential for policymakers to harmonize growth output with inflation expectations. Niti Aayog’s Ashok Lahiri pointed out the importance of addressing inflation alongside job creation. He urged banks to play a pivotal role in linking enterprises with financial support and investment options. To capitalize on its natural resources, West Bengal must focus on industry attraction, while…
Kolkata: Niti Aayog's Ashok Lahiri cautioned on Friday about the potential growth risks associated with further monetary policy tightening, as investors ponder the impact of the US Federal Reserve's recent pause in rate hikes. Lahiri emphasized the need for policymakers to strike a balance between output growth and inflationary expectations, emphasizing the importance of maintaining both economic expansion and employment levels.
The vice chairman's remarks came in response to growing speculation about the RBI potentially tightening its monetary policy after publishing the minutes of its Monetary Policy Committee meeting, which indicated a likelihood of additional rate hikes to control inflation. However, Lahiri warned that rising crude oil prices pose risks to economic growth, particularly given the current geopolitical climate.
He attributed a lackluster private investment climate in India to geopolitical uncertainties, urging businesses to be proactive in navigating these risks. Lahiri also encouraged banks to expand their roles beyond issuing loans, advocating for them to serve as intermediaries connecting businesses with financial resources and investment opportunities, thus unlocking West Bengal's industrial potential.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
