Inflation a challenge. explain why? (100 words)
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Explanation:Rising inflation and declining growth is back in the news, with Q3 FY2020 growth at a low 4.7% and consumer price index (CPI) inflation over the upper limit of the inflation target regime of 6%. After reducing the repo rate by 135 basis points (bps) in 2019, the Monetary Policy Committee (MPC) has paused in lowering the interest rates, while keeping the stance accommodative. (RBI) has introduced other measures to enhance credit growth, such as longer-term repos and reprieve for loans to real estate and autos. Whether these will be enough to boost recovery remains to be seen, as credit growth remains at a low 6-7%.
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