Change policy stance

As December 16 approaches, the date the Reserve Bank of India (RBI) is due to release its mid-quarterly review of monetary policy, there are two recent numbers that loom ever larger. The first is 6.9 per cent. That is the rate at which the Indian economy grew in the quarter between July and September, according to figures the Central Statistical Organisation released last week; the dip below seven per cent could have been expected, but still served as a stiff reminder. The second is eight per cent, the most recent year-on-year estimate from the commerce ministry of how much food prices have been growing.

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