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2.9.2. Inflation vs. Growth Tradeoff in Monetary Policy

RBI has increased its repo rate several times (since January 2011) to combat inflationary trends in the economy. But such attempts of RBI have been unsuccessful. Critics have questioned this policy/method of increasing interest rates to combat inflation.

 

Views against increasing interest ratesRationale given by RBI for hiking interest ratesCan monetary policy alone control inflation in the economy?