The above is article from Yesterdays Express. As you all know | ECONOMY by VIVEK SINGH

The above is article from Yesterdays Express.

As you all know that RBI as an institution has different objectives of price stability, credit creation leading to economic growth, financial stability etc. But RBI's monetary policy has specific objective of inflation targeting.

The above article says that RBI is more focussed on reducing the borrowing cost for Govt's huge fiscal deficit plan and it is targeting the interest/yield in the Govt.'s bond market (Govt. securities are bought and sold by RBI and financial institutions). And because of that it has planned an aggressive Government Securities Acquisition Programme (G-SAP) to bring down the yield/interest rate. But this pumping of money by the RBI (under G-SAP) may not bring down the interest rate as the inflation is already rising and bond investors thus demand more interest rate.

This article mainly summarizes/criticizes that because RBI has shifted its priority/objective from controlling inflation and growth towards reducing the cost of borrowing for Govt. (which is not the RBI's objective), it may result in other problems in the economy like inflation.