Thus, antiinflationary increases in policy rates may look anti-growth in the short-run, but such a policy stance is necessary for achieving low inflation and high growth objective in the medium run. Since monetary policy operates with a lag, it is this medium-term goal of non-inflationary high growth that explains the RBI’s monetary policy actions taken so far.
With that, Carolyn and I are happy to take your questions. 2  BIS central bankers’ speeches