SME Times is powered by   
Search News
Just in:   • Exports fall by over 9 pc YoY in Nov  • Bharti Airtel arm picks up 4.9% stake more in Bharti Infratel  • Engineering exporters seek easier GST refund rules at BoT meet  • Centre to incubate electronics startups opened in K'taka  • Samsung tops global smartphone production in Q3: Report 
Last updated: 23 Oct, 2020  

RBI.9.Thmb.jpg 'Rate cut transmission to help ease financial conditions'

RBI.9.2.jpg
   Top Stories
» Exports fall by over 9 pc YoY in Nov
» Engineering exporters seek easier GST refund rules at BoT meet
» RBI commences MPC meet on Wednesday
» 'Corporate India gradually reverting to normalcy'
» Manufacturing sector loses growth momentum in November
SME Times News Bureau | 23 Oct, 2020
The ongoing transmission of past monetary policy actions would help ease financial conditions further, RBI Governor Shaktikanta Das had said during the previous monetary policy committee meet.

According to the minutes of the MPC meet released on Friday, Das said: "The ongoing transmission of past monetary policy actions would help ease financial conditions further."

The statement assumes significance as past rate cut transmission will provide lower interest rates which in effect is expected to trigger consumption and economic revival.

Besides, the Governor said that there exists space for future rate cuts if the inflation evolves in line with the expectations.

"This space needs to be used judiciously to support recovery in growth," he said.

Das said that monetary policy at this stage has to provide adequate support to ensure a robust revival of the economy from the devastating effects of Covid-19, while at the same time ensuring that any persistence of elevated inflation does not lead to unanchoring of inflation expectations.

"With the supply side disruptions that are seen to drive the current inflationary pressures likely to be transient and wane out in months ahead as economy normalises, there is merit in looking through the current high levels of inflation and persevere with the accommodative stance for monetary policy as long as necessary to revive growth on a durable basis," Das said.

"Moreover, taking into account the projected moderation in inflation and the large output loss, I vote to keep the policy rate unchanged at present and continue with the accommodative stance, during the current financial year and into the next financial year, at the least. This would help to reduce uncertainty and market volatility. This would also enhance confidence in the monetary policy resolve to support the growth recovery process while ensuring that inflation remains within the target," he added.

The penultimate meet of the MPC in 2020 was conducted from October 7 to 9.

Accordingly, the MPC decided to maintain the repo -- or short-term lending -- rate for commercial banks at 4 per cent on the back of persistently high inflation, fanned in part due to supply side disruptions along with seasonal factors.



 
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 03 Dec, 2020
  Daily Poll
COVID-19 has directly affected your business
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(1)
» MSME registration(1)
» MSME schemes - Do you know all of them?(1)
» Biodiesel is the fuel of future: Santosh Verma(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter