The Reserve Bank of India on Thursday decided to keep the policy rate unchanged for the sixth time in a row, citing global uncertainty and the need to bring down retail inflation to 4%, and said that it expects GDP growth in the next financial year to be at 7%.
While the tangible decisions of the MPC policy rate and monetary policy stance - have both remained unchanged in keeping with market expectations, the tone of the MPC resolution borders on the hawkish and has added an element of delay to the timeline of ratecuts.
"Monetary policy must continue to be actively disinflationary to align inflation to the target of 4% on a durable basis", Governor Shaktikanta Das said in his statement after the bi-monthly Monetary Policy Committee (MPC) of the RBI on Thursday.
To be sure, RBI's overzealous take on fighting inflation might also be a result of the fact that domestic growth continues to be strong - next year's 7% would be the third consecutive year growth will have been above that number if the forecast comes to bear and headwinds to growth are more likely from external than domestic factors.
In what was the last MPC meeting for the fiscal year 2023-24 and before the 2024 general elections, the central bank stuck to its guns on the need to prioritise inflation targeting over growth in the wake of elevated geopolitical risks and supply side-driven shocks to food inflation. These downside risks, the MPC noted, call for a continuation of the withdrawal of the accommodation stance of monetary policy.
Esta historia es de la edición February 09, 2024 de Hindustan Times.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición February 09, 2024 de Hindustan Times.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
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.