RBI warns against combination of high public debt, low interest rates
RBI warns against combination of high public debt, low interest rates IANS 03 July 2021 The pandemic response saw a tight interaction of monetary and fiscal policy. As monetary policy has sought to control a larger segment of the yield curve, the overlap with public debt management has grown, noted RBI's Financial Stability Report for July. It noted that with monetary policy committed to an easy stance for some time in many countries, the fiscal stance becomes important. Too loose a fiscal stance could cause inflation surprises and financial conditions could tighten, it said, adding ...