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RBI's tightrope walk - The Hindu BusinessLine


RBI’s tightrope walk
April 07, 2021
The RBI’s MPC has done all it can to combat the Covid crisis. Now it’s time for fiscal policy action   -  Bloomberg
The RBI’s MPC has done all it can to combat the Covid crisis. Now it’s time for fiscal policy action   -  Bloomberg×
In balancing growth and inflation concerns, the MPC might soon run out of options
India’s monetary policy authorities are faced with an unenviable situation as FY22 unfolds: Pursuing contrary goals of promoting growth and keeping inflation under check. Amidst a surge in Covid cases, growth threatens to hit a speedbreaker all over again, just when high frequency indicators had begun to show signs of revival. Since March 2020, the Monetary Policy Committee has pulled out all stops in announcing liquidity enhancement measures, besides cutting the repo rate by 115 basis points. These steps have not led to any palpable improvement in bank credit offtake. If banks remained risk averse ....

Michael Patra , Monetary Policy Committee , Means Advances , Governor Michael Patra , மைக்கேல் பத்ரா , பண பாலிஸீ குழு , கவர்னர் மைக்கேல் பத்ரா ,

'Growth momentum needs to be strengthened'


‘Growth momentum needs to be strengthened’
Updated:
Updated:
Policy support required: MPC minutes
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Policy support required: MPC minutes
The growth momentum needs to be strengthened for a sustained revival of the economy and a quick return to the pre-COVID trajectory, RBI Governor Shaktikanta Das said, pitching for a status quo on rates, at the last meeting of the Monetary Policy Committee (MPC).
All the six members of the MPC had voted for keeping the policy repo rate unchanged at 4% at the three-day meeting which began on February 3, citing similar reasons.
Mr. Das, according to the minutes of the meeting released by the central bank on Monday, had said: “Growth, although uneven, is recovering and gathering momentum, and the outlook has improved significantly with the roll-out of the vaccine programme in the country.” ....

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