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Tight monetary policy may hit GDP growth: Lehman
July 28, 2008: Lehman Brothers, the global investment bank has warned about further tightening of monetary policy ahead of RBI's quarterly credit policy review. According to the bank with an expansionary fiscal policy and rising risks of second-round effects of inflation, it expect further monetary policy tightening to tame inflation, but only at the cost of slowing GDP growth.
After rising since May, inflation slightly declined to 11.89% for the week ended on July 12. Inflation had shot up from 7.82 % on May 10 to 11.05 % in June on hike in oil prices.
Source: Financial Express