Industrial countries are still struggling, with a few exceptions, to grow. Our fellow BRICS all have deep problems. Indeed, India appears to be an island of relative calm in an ocean of turmoil. What is different and how can we be assured that it will continue? A lesson from Brazil? Perhaps Brazil offers a salutary lesson.
After the Bank examined these matters, it assessed that the risks on the price front as “largely balanced”; however, considerable uncertainty surrounds developments in medium- to long-term inflation expectations (Chart 7). Regarding these risk assessments, my personal views will be explained in Section IV.