At the frontline of research on the subject, the RBI has on May 3, 2023 released the Report on Currency and Finance, 2022-23 with the theme “Towards a Cleaner Greener India”. The Report has examined the macro-financial implications of climate change and the possible fiscal, monetary, regulatory and other policy options for India.
Consequently, we were worried that this would negatively affect the underlying trend in inflation. In order to preempt the manifestation of this risk and maintain the momentum toward achieving the price stability target, we judged that it was necessary to further strengthen monetary easing at this juncture. In introducing “QQE with a Negative Interest Rate,” we focused on two points.