NEW DELHI: The Indian economy is on a recovery path, but it still needs all the policy support it can get. Given the worrying turn in external economic environment, it is important that the ongoing recovery is expedited, and the festive season will be crucial in achieving this goal.
That's the central message from the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), which finished its customary bi-monthly meeting on October 8, and decided to leave the policy rate untouched and maintain a so-called "accommodative stance", meaning that it will continue to push for growth. RBI also stuck to its forecast of 9.5% growth for 2021-22.
MPC also indicated that inflation is unlikely to be a cause for concern, though, for the second time this year, it pushed for a reduction in excise tariffs on fuel that have seen petrol prices exceed 100 in the country's four largest cities and in many other parts).
MPC's decision counters the view-not just outside but even within the MPC-that RBI should have sent a stronger signal for normalisation of monetary policy by raising the so-called reverse-repo or doing away with the accommodative stance of monetary policy. The reverse repo is the rate at which RBI borrows from banks, and is widely considered an effective monetary tool to deal with situations of excess liquidity.
This story is from the October 09, 2021 edition of Hindustan Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the October 09, 2021 edition of Hindustan Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Palestinian PM Resigns Citing 'New Reality' Of War In Gaza
The United States and other powers have called for a reformed Palestinian Authority to take charge of all Palestinian territories after the end of war
Future Perfect: The Kids Are All Right
Gill and Jurel hold out promise by simplifying a challenging chase to help India seal series
Akshay feels 'blessed' to have worked with OG Ramayan cast
Director Akshay K Agarwal shot a music video, Humare Ram Aaye Hai, with the cast of the 1987 TV show, Ramayanactors Arun Govil, Dipika Chikhlia and Sunil Lahri - in Ayodhya recently.
Musk's firm gets nod for Sat Net; joins Jio, Bharti
Starlink, owned by billionaire Elon Musk, has been allowed to offer satellite broadband services in India, two officials aware of the development said.
A temple, 169 years in the making
Through decades of design and reworks, hurdles in engineering and construction, HT pieces together how the grandeur of the Ram Temple was reclaimed
'Political interference' forces Vihari to quit Andhra cricket
After Andhra bowed out of the Ranji Trophy at the quarter-final stage with a four-run defeat to Madhya Pradesh in Indore on Monday, senior batter Hanuma Vihari launched a scathing attack on the Andhra Cricket Association (ACA), saying he will never turn up for the state again.
Shafali, Kapp lead Capitals to a 9-wicket win over Warriorz
A blazing fifty by Shafali Verma (64₹, 43 balls) helped Delhi Capitals make a mockery of a target of 120 and open their account in the second edition of the Women's Premier League (WPL).
Making 'unbelievable things believable', the Ayhika way
The India No. 7 was an inspired pick for the world team event and she repaid the faith, beating the Chinese world No.1
'Connected TVs to reach 45 mn by 2024-end in India'
With improvement in broadband penetration, Indian households are increasingly opting for connected or addressable TVs.
India chip strategy makes progress as $21 billion in proposals received
The Indian government, after years of watching from the sidelines of the chips race, now has to evaluate $21 billion of semiconductor proposals and divvy up taxpayer support between foreign chipmakers, local champions or some combination of the two.