SME Times is powered by   
Search News
Just in:   • Market mayhem: Sensex tanks 713 pts, Nifty 205 pts  • Demonetisation threw up political, economic puzzles: Arvind Subramanian  • Trump commits to $750 bn defence budget  • Tea exports up 1.17 percent in Jan-Oct  • Amazon India to host online sales event for SMBs 
Last updated: 06 Dec, 2018  

RBI.9.Thmb.jpg RBI policy stance required rethink: Government

RBI.9.jpg
   Top Stories
» Market mayhem: Sensex tanks 713 pts, Nifty 205 pts
» Tea exports up 1.17 percent in Jan-Oct
» Auto sales down 3.43 percent in November
» Direct tax collections rises 15.7 per cent in November
» Agri export policy to push exports, farmers' income: FIEO
SME Times News Bureau | 06 Dec, 2018
Economic Affairs Secretary Subhash Chandra Garg on Wednesday said the 'calibrated tightening' stance of RBI's Monetary Policy Committee (MPC) probably needed a rethink even as he welcomed the decision on policy rate.

"The government welcomes the assessment of the MPC. The government notes its decision to maintain the policy rate. The policy stance probably required calibration," Garg said in a statement issued by the Ministry of Finance.

With inflation under control and forecast of even lower inflation in the second half of the current fiscal, there was a case for change in stance from 'calibrated tightening' to 'neutral' even as the market believed the rates would remain unchanged.

However, the MPC while keeping the repo rate intact at 6.5 per cent, also retained the stance as it saw higher implied volatility in the sharp decline in inflation in short term and wanted to see whether fall in food and oil prices are durable in medium term.

Garg also said that the RBI's decision to reduce Statutory Liquidity Ratio (SLR) from existing 19.5 per cent to 18 per cent in six quarterly instalments beginning January 2019 "will have some implications for the government securities".

"However, the momentum created by the reduction in oil prices and reversal of foreign flows has resulted in further moderation of yields post policy announcement," he said.

The assessment of the MPC for growth and inflation outlook is consistent with that of the government, he said. The GDP growth projection for 2018-19 is retained at 7.4 per cent as in the fourth bi-monthly resolution in October, 2018.
 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 10 Dec, 2018
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Yes
 No
 Can't say
  Commented Stories
» The marketing mix for small business marketing(4)
» Increase credit flow to boost GDP: FICCI(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter