(Poonam Gupta is the director general of National Council of Applied Economic Research. The column first appeared in The Economic Times on October 12, 2021)
- Inflation is making a comeback globally. A number of advanced countries are experiencing inflation rates that are higher than corresponding rates during the last several decades. As a result, the monetary policy easing cycle seems to be mostly over. Last week, the Reserve Bank of India (RBI) kept key interest rates unchanged, for the eighth time in a row. Most central banks in emerging markets have paused lowering of their policy rates, and some have started raising them. For example, in the last couple of months, Brazil, Chile, Mexico and Peru have raised their policy rates.