Wednesday, 6 November 2019

Fourth Bi-monthly Monetary Policy Statement, 2019-20: Another well deserved round of easing

This time round the MPC reduced the repo rate by 0.25% instead of 0.35%. I am all for easing the repo rate. Please see my blog dated June 5, 2019 titled "A review of monetary policy: there is a serious need to correct flawed policy execution". 

Things are pretty dire on the growth front: RBI reduced its estimate of GDP growth for 2019-20 from 6.9% to 6.1% - practically a 1% reduction is a huge adjustment. In this context, please see the virtual halt to the growth of credit in H1 OF 2019-20

Inflation projection for H2 of 2019-20 remains at 3.6%.



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