Belying the expectations of a rate cut, the monetary policy committee (MPC) has not only decided to keep the rates unchanged in its meeting today but more importantly, has shifted its stance from “accommodative” to “neutral’. This is “to assess the transitory effects of demonetization on inflation and the output gap”. The shift marks a significant … Continue reading Monetary Policy – From "Accommodative" to "Neutral" stance..
The MPC (Monetary Policy Committee) decision to cut rate by 25 basis points in its first ever meeting today, also the first under the new governor Dr Urjit Patel, appears not entirely convincing from inflation control perspective. Yet this would bring cheers to both corporate and retail borrowers and hopefully, the clamour for rate cut would … Continue reading RBI rate cut – Is it justified.??
RBI released its third Monetary Policy for this financial year today which is also the last under the current governor. This is probably also the last rate setting exercise by the governor since soon, the responsibility for this would shift to Monetary policy committee. (Read more on this – https://indiaeconomyandbusiness.com/2016/05/17/monetary-policy-committee/). The policy has kept the … Continue reading Monetary Policy – The Key Lessons..