RBI Unexpectedly Holds Key Rate

The transcript discusses the RBI's sixth consecutive rate cut and its implications on monetary policy. Shaktikanta Das's comments highlight a shift in RBI's focus from growth to inflation. The policy decision has led to a downgrade in growth forecasts for fiscal year 2020. The need for fiscal policy to work alongside monetary policy is emphasized to support economic growth. Despite signs of economic recovery, the current slowdown is severe, and more stimulus is needed for a sustainable recovery. The RBI's cautious approach may hinder a sharper recovery, affecting financial markets and increasing the trust deficit.

What are the potential consequences of the RBI's current stance on monetary policy for economic growth?

In what ways might fiscal policy need to align with monetary policy to support economic recovery?