This was the first monetary policy statement of the new RBI governor Urjit Patel
GN Bureau | October 4, 2016
In the fourth bi-monthly monetary policy statement, the Reserve Bank of India’s monetary policy committee (MPC) reduced the repo rate by 25 basis points, from 6.5 percent to 6.25 percent. The MPC, headed by the newly appointed RBI governor Urjit Patel, said that its decision was “consistent with an accommodative stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5 percent by Q4 of 2016-17 and the medium-term target of 4 percent within a band of +/- 2 per cent, while supporting growth”.
The committee, which has three eminent economists as independent members, said it expected that the strong improvement in sowing, along with supply management measures, would improve the food inflation outlook. “The government has announced several measures to cool food inflation pressures, especially with regard to pulses. These measures should help in moderating the momentum of food inflation in the months ahead,” the MPC said.
The committee added that the momentum of growth is expected to quicken with a normal monsoon raising agricultural growth and rural demand, as well as by the stimulus to the urban consumption spending from the pay commission’s award. “The accommodative stance of monetary policy and comfortable liquidity conditions should support a revival of credit to the productive sectors,” it said.
Can you guess the connection between Kuwait and the remote villages in Chittoor district of Andhra Pradesh? Hint: Wealth lures poverty. Kuwait has money and jobs, while the villages in AP abound with people who have no hopes of ever making it good. Whatever they may d
Defence secretary Sanjay Mitra reviewed the Indigenous Aircraft Carrier (IAC) project at Cochin Shipyard Limited (CSL) on Jul 19. During the onboard visit, Mitra was given a briefing on the progress of the aircraft carrier construction by warship production superintendent Commodore Cyril Tho
In order to boost domestic production of hydrocarbon resources, the centre has approved the policy framework for streamlining operations of production sharing contracts (PSCs) in pre-NELP (new exploration licensing policy) and NELP blocks. The policy framework includes special dispensation f
In its bid to indigenously develop petroleum certified reference materials branded as Bhartiya Niredeshak Dravyas, CSIR- National Physical Laboratory (NPL) has signed a pact with Hindustan Petroleum Corporation Limited (HPCL). It will not only ensure maintaining highest standard quality ecos
A total of 31.67 GW of renewable energy capacity has been installed through implementation of various renewable energy schemes and programmes in the last three years in the country. Indian Renewable Energy Development Agency (IREDA) has conducted several following studies with foreign assist
For a ban that arrived with a bang, it seems to be fading away even before it could take effect. The Maharashtra government has backtracted to allow groceries and general stores to continue to use plastic for packaging after shopkeepers associations complained to state environment minister Ramdas Kadam. Al