India's Money Supply Grows 14.7 Pct on Year as on May 7
India's M3 money supply, which includes currency in circulation and central bank reserves, rose an annual 14.7 percent to ₹5.89 lakh crore ($83 billion) as of May 7, unchanged from April 23, according to the Reserve Bank of India. The growth rate is slightly above estimates, indicating a stronger-than-expected recovery in the country's economy. The central bank's benchmark interest rate remains unchanged.
- This rapid expansion of the money supply could lead to increased inflationary pressures and higher interest rates, potentially slowing down economic growth.
- How will the RBI respond to these inflation concerns and what policy adjustments are needed to maintain price stability?