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A Goldilocks moment: Sustaining it will demand fiscal care

The Tribune Editorial: Strong GDP numbers coexist with inflation at a benign 2.2% and growth at 8% in the first half of the financial year.

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THE Reserve Bank of India’s Monetary Policy Committee (MPC) has delivered a widely anticipated 25-basis-point cut in the repo rate, bringing it down to 5.25 per cent. With this, the Central bank has eased rates by a cumulative 125 basis points since February, signalling confidence in the economy’s ability to sustain growth while keeping inflation in check. Governor Sanjay Malhotra described the present moment as a “rare Goldilocks period”, where strong GDP numbers — now projected at 7.3 per cent for the current fiscal — coexist with inflation at a benign 2.2% and growth at 8% in the first half of the financial year.

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