Inflation-growth dynamics may enhance dilemma of monetary policy committee

A low 4.4 per cent gross domestic product (GDP) growth rate for the third quarter of the current financial year and above six per cent retail price inflation rate for over a year now, barring two months of November and December, may accentuate a dilemma before the monetary policy committee to go for another policy rate hike or not at its April monetary policy.

The fourth quarter would yield 5.1 per cent GDP growth rate if advance estimates of seven per cent growth for the full 2022-23 holds true. If it reduces to, say the projections made by the International Monetary Fund (IMF) at 6.8 per cent for the entire year, the fourth quarter would deliver just 4.4 per cent