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Business
SBI Report Says RBI’s Monetary Policy Stuck Between Diverging Inflation and Growth
✍️ Telangana Today
🗓 24 Aug 2026, 11:04 AM
👁 2
A State Bank of India analysis warns that the Reserve Bank of India faces a ‘chalk and cheese’ dilemma, with inflation and growth moving in opposite directions.
The State Bank of India (SBI) has highlighted a growing imbalance in the Reserve Bank of India's monetary stance, describing it as a ‘chalk and cheese’ problem. The phrase points to a widening gap between the central bank's dual objectives: curbing inflation while sustaining economic growth.
SBI's analysis notes that price pressures remain stubborn in several sectors, whereas growth indicators have shown signs of slowing. This divergence makes it difficult for the RBI to calibrate policy rates without favouring one goal over the other.
Economists say the situation could force the RBI to adopt a more cautious approach, possibly keeping policy rates unchanged for longer while monitoring data closely. The report underscores the challenge of navigating a post‑pandemic economy where inflationary spikes and growth slowdown coexist.
SBI's analysis notes that price pressures remain stubborn in several sectors, whereas growth indicators have shown signs of slowing. This divergence makes it difficult for the RBI to calibrate policy rates without favouring one goal over the other.
Economists say the situation could force the RBI to adopt a more cautious approach, possibly keeping policy rates unchanged for longer while monitoring data closely. The report underscores the challenge of navigating a post‑pandemic economy where inflationary spikes and growth slowdown coexist.