Saturday, 01 April 2023



LATEST NEWS IPL 2023: Gujarat Titans begin title defence with five-wicket win over CSK IPL 2023: Tushar Deshpande makes history, becomes first 'Impact Player' Madrid Spain Masters: Sindhu storms into semis, Srikanth ousted in quarters From Priyanka-Nick to Bollywood's A-list, global celebs throng NMACC opening Excise policy scam: Sisodia's bail plea in CBI case dismissed Novel drug offers hope for heart failure, sleep apnoea patients Sharad Kelkar's 'work culture shock' moment with Sanjay Leela Bhansali Committed To Ensure Seamless Clearance Process For CBG, CGD Projects : Aman Arora Corruption has become identity of Telangana's BRS government, says Nadda Indore temple tragedy: Death toll rises to 36, youngest victim 2 yr-old boy Vigilance Bureau Arrests One More Accused In Embezzlement Of Housing Grant Meant For Homeless Pre-poll surveys indicate tough contest, but BJP to get majority: Bommai 'Bathukamma' song from 'Kisi Ka Bhai Kisi Ki Jaan' an ode to Telangana's flower fest Vigilance Bureau Nabs ASI For Taking Bribe Rs 10,000 Rupnagar police arrests gangster Jaggu Bhagwanpuria's accomplice with 5 pistols & 20 live cartridges Justice Sant Prakash Assumes Charge As The Chairman Of The Punjab State Human Rights Commission Government of Goa in partnership with Newton School organizes Digital Goa Youth Summit Sukhvinder Singh Sukhu lays foundation stone for first PET block at IGMC MoU inked for 4G service in remote areas Lokpal Punjab Felicitates Presidential Medal Winner Inspector Kesar Singh On His Superannuation LOP Partap Bajwa, campaign committee chairman Rana Gurjeet meet elected representatives in Phillaur


RBI retains lending rates but gives optimistic outlook

Web Admin

Web Admin

5 Dariya News

Mumbai , 09 Oct 2020

Persistently high inflation fanned in part due to supply side disruptions along with seasonal factors led the Reserve Bank of India to maintain the key lending rates.Accordingly, the Monetary Policy Committee of the central bank in its penult imate meet for 2020, decided to maintain the repo rate -- or short-term lend ing -- rate for commercial banks, at 4 per cent.Besides, the reverse repo rate stands unchanged at 3.35 per cent, and the marginal standing facility (MSF) rate and the 'Bank Rate' at 4.2 per cent.The MPC voted to maintain accommodative stance, thus opening up possibilities for more future rate cuts.It was broadly expected that the RBI's MPC might hold rates as recent data showed that retail inflation has been at an elevated level during June."The MPC evaluated domestic and global macroeconomic and financial condition s and voted unanimously to leave the policy repo rate unchanged at 4 per cen t," RBI Governor Shaktikanta Das said."It also decided to continue with the accommodative stance of monetary policy as long as necessary -- at least during the current financial year and int o the next year -- to revive growth on a durable basis and mitigate the impact of Covid-19, while ensuring that inflation remains within the target going forward."According to Das, India's economy is entering into a decisive phase in the fight against the pandemic.He cited that relative to pre-Covid levels, several high frequency indicator s are pointing to the easing of contractions in various sectors of the economy and the emergence of impulses of growth."By all indications, the deep contractions of Q1:2020-21 are behind us; silver linings are visible in the flattening of the active caseload curve across the country," Das said."Barring the incidence of a second wave, India stands poised to shrug off th e deathly grip of the virus and renew its tryst with its pre-Covid growth trajectory."The governor pointed out that some of "this optimism is being reflected in people's expectations".

In the September 2020 round of the RBI's survey, households expect inflation to decline modestly over the next three months, indicative of hope that supply chains are mending."Our projections indicate that inflation would ease closer to the target by Q4:2020-21. Our other surveys, also conducted in September, indicate that consumer confidence is turning upbeat on the general economic situation, employment and income over a one year ahead horizon,"."While the current assessment of the overall business situation remains in contraction in Q2, it has moved up from a low in Q1. Forward-looking business expectations are optimistic on the overall business situation, production, order books, employment, exports and capacity utilisation."Significantly, the inflation expectations denotes the likely timing of the n ext rate cut as monetary policy is in essence a tool to containing rising prices.Lately, retail inflation has been at an elevated level during July-August.The retail or consumer price index stood at 6.69 per cent in August. It had risen to 6.73 per cent in July.As per the data, retail inflation level has reached the upper limit of the medium-term CPI inflation target of four per cent. The target is set within a band of plus/minus two per cent.On the growth part, he said that country's real GDP may decline by 9.5 per cent in the financial year 2020-21."The modest recovery in various high-frequency indicators in September 2020 could strengthen further in the second half of 2020-21 with progressive unlocking of economic activity," the governor said."Agriculture and allied 5 activities could well lead the revival by boosting rural demand. Manufacturing firms expect capacity utilisation to recover in Q3:2020-21 and activity to gain some traction from Q3 onwards."However, he predicted that both private investment and exports are likely to be subdued, especially as external demand is still anaemic."For the year 2020-21 as a whole, therefore, real GDP is expected to decline by 9.5 per cent, with risks tilted to the downside. If, however, the current momentum of upturn gains ground, a faster and stronger rebound is eminently feasible," he said.


Tags: RBI , Reserve Bank of India , Monetary Policy Committee



related news




Photo Gallery



Video Gallery



5 Dariya News RNI Code: PUNMUL/2011/49000
© 2011-2023 | 5 Dariya News | All Rights Reserved
Powered by: CDS PVT LTD