WHILE TAMING inflation remains a key priority for the Centre, hiking interest rates to tackle runaway prices might not always be the best approach as it can “come in the way of economic recovery”, Finance Minister Nirmala Sitharaman said Friday. She also cautioned central banks around the world to keep in mind “growth, and growth-related priorities”.
“Elevated interest rates for a considerable time can come in the way of economic recovery. So, the tendency to use interest rates as the only solution for dealing with inflation has its own downside,” Sitharaman said during her remarks at the B20 Summit organised by Confederation of Indian Industry (CII).
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