Rate hikes may not tame inflation in supply-shocked world: CEA Nageswaran

New Delhi, Nov 13 (UNI) Chief Economic Advisor (CEA) V Anantha Nageswaran today said conventional monetary policy measures, including interest rate hikes, may become increasingly ineffective in controlling inflation as global economies face prolonged supply-side disruptions. He emphasised that fiscal interventions and other public policy measures would play a more significant role in addressing price pressures arising from supply constraints. Speaking at the 9th annual Food Systems Dialogue here, Nageswaran said increasing borrowing costs cannot resolve shortages or disruptions in the supply of essential commodities and could, in certain circumstances, worsen the economic situation. He also suggested that countries may…