Menu

monetary Policy

Rbi cfo

CII Asks RBI To Moderate Pace Of Monetary Tightening

, , , , , ,

The domestic demand has shown a better recovery following the performance of a host of high-frequency indicators. RBI should consider moderating the pace of its monetary tightening from the earlier 50 basis points, said the Confederation of Indian Industry

The Reserve Bank of India (RBI) has been asked by the Confederation of Indian Industry (CII) to consider moderation in the pace of its monetary tightening ahead of the forthcoming monetary policy review. It cited challenges coming from global headwinds, on 27 November.

The industry body in a statement, said “Given the headwinds to domestic growth mainly emanating from the global uncertainties, the RBI should consider moderating the pace of its monetary tightening from the earlier 50 basis points.”

The Monetary Policy Committee (MPC) will hold meet from 5 to 7 December.

The domestic demand has shown a better recovery following the performance of a host of high-frequency indicators. However, the prevailing global ‘polycrisis’ is may leave an impact on growth prospects of India too, according to CII.

While CII is aware of interest rate hikes by RBI of 190 basis points so far in the current fiscal, that have been warranted to soften inflationary pressures. The corporates to have now started feeling its adverse impact, it said.

economy

Indian Economy Likely To Grow At 6-7% In FY23: PHDCCI

, , , , ,

The Reserve Bank of India (RBI) also has slashed India’s growth projection for FY23 to 7 per cent from 7.2 per cent due to aggressive monetary policy tightening all around the globe

Going by the current trends, the Indian economy is likely to grow at 6 to 7 per cent in financial year (FY) 2023 amid ‘big’ demand, said the PHD Chamber of Commerce and Industry (PHDCCI) on Wednesday.

Post Covid-19 pandemic, the production has bounced back and there is a “big” demand in India, said Saket Dalmia, President of PHDCCI.

However, amid the ongoing Ukraine crisis, the International Monetary Fund (IMF) on Tuesday slashed its projection of India’s economic growth in 2022 to 6.1 per cent. However, its growth is estimated to be the fastest among major economies.

The Reserve Bank of India (RBI) also has slashed India’s growth projection for FY23 to 7 per cent from 7.2 per cent due to aggressive monetary policy tightening all around the globe.

PHD Chamber has found around 75 potential products like chemicals and agriculture to promote their exports in about 75 nations such as the United States (US) and the crisis hit Europe to achieve trade the target of USD 750 billion by 2027, Dalmia said.

“We cannot realise our ambition of becoming a developed nation by 2047 without the active contribution of women-owned businesses. We are planning a new initiative on facilitating women start-ups and aligning our thought leadership with the PM’s vision of Nari Shakti driving the Indian economy,” added Dalmia.

Rbi cfo

India’s Monetary Policy Financially Inclusive By Design: RBI DG Patra

, , , ,

An economy with all consumers financially included would expect to experience less output volatility due to lower consumption volatility.

The country’s monetary policy is, by design, financially inclusive and this strategy will result in policy effectiveness and welfare maximisation going ahead, Reserve Bank of India’s Deputy Governor Michael D Patra said on Friday. Financial inclusion appears to have gone up, with the level of the RBI’s financial inclusion index rising from 49.9 in March 2019 to 53.1 in March 2020 and further to 53.9 in March 2021, Patra said at an event organized at the Indian Institute of Management (IIM), Ahmedabad.

“The evidence is still forming and strong conclusions from its analysis may be premature, but India’s monetary policy is, by design, financially inclusive and it will reap the benefits of this strategy in the future…,” he stated. An economy with all consumers financially included would expect to experience less output volatility due to lower consumption volatility. In an economy with financially excluded consumers, monetary policy has to assign a greater weight to stabilising output, he said. 

Patra said going ahead as financial inclusion rises even further in India, consumption volatility as a source of output volatility can be expected to wane. This will provide headroom for monetary policy to remain focused on minimising inflation volatility, which brings welfare gains for all, he added. 

(PTI)

Rbi cfo

India To Remain Accommodative In Its Monetary Policy: RBI Governor

, , , , ,

India, which is experiencing robust economic recovery which remains uneven across sectors, has decided to remain accommodative in its monetary policy, the Reserve Bank of India Governor told the international community on Thursday.

India is witnessing a very robust economic recovery, but there is still unevenness across sectors, RBI Governor Shaktikanta Das said in his address to the annual meeting of the International Monetary Fund and the World Bank. Video of the excerpts of his speech were posted and released by the IMF.

We have therefore decided to remain accommodative in our monetary policy, while being closely watchful of the evolving inflation scenario, Das said in the short video.

(PTI)

Rbi cfo

India To Remain Accommodative In Its Monetary Policy: RBI Gov

, , , , , ,

India is witnessing a very robust economic recovery, but there is still unevenness across sectors, RBI Governor Shaktikanta Das said in his address to the annual meeting of the International Monetary Fund and the World Bank. Video of the excerpts of his speech were posted and released by the IMF.

India, which is experiencing robust economic recovery which remains uneven across sectors, has decided to remain accommodative in its monetary policy, the Reserve Bank of India Governor told the international community on Thursday.

India is witnessing a very robust economic recovery, but there is still unevenness across sectors, RBI Governor Shaktikanta Das said in his address to the annual meeting of the International Monetary Fund and the World Bank. Video of the excerpts of his speech was posted and released by the IMF.

“We have therefore decided to remain accommodative in our monetary policy while being closely watchful of the evolving inflation scenario,” Das said in the short video.

(PTI)

RBI may hike rates in March qtr of 2022; coal and chip shortages a worry: Report

, , , , ,

The central bank will start with liquidity normalisation moves this month, narrowing the difference between the rate at which it funds the system and at which it absorbs excess liquidity in December, Nomura said.

 The Reserve Bank is likely to change the stance of its monetary policy and hike rates from the first quarter of 2022, a Japanese brokerage said on Monday.

The central bank will start with liquidity normalization moves this month, narrowing the difference between the rate at which it funds the system and at which it absorbs excess liquidity in December, Nomura said.

It can be noted that the latest move by the Reserve Bank of India (RBI) last week to narrow the excess liquidity in the system through stated targets is being seen by some as the normalization of the policy, which has been very accommodative since the onset of the pandemic to boost growth.

The brokerage upped its consumer price index (CPI) inflation target for 2022 to 5.2 percent from 5 percent earlier. Demand remains strong in India, but there are supply-side headwinds in areas like chips which is bothering the auto sector and coal shortages which threaten to put parts of the country into darkness, it said.

The country is reporting coal shortages and power sector companies face the prospect of importing coal at significant cost.

With power demand likely to rise amid the continued economic normalization and upcoming festive sales, supply-side disruptions pose an important near-term downside risk to growth momentum, it warned.

For the week ended last Sunday, its Business Resumption Index rose to 105.1 from 103.4 in the prior week.

“If power outages become more widespread, then industrial output could suffer in the near term, while higher energy costs may squeeze firms’ margins and add to consumer price inflation,” the brokerage said in the report.

PTI