4th March 2024

Confidant Classes

for LAW | CLAT | JUDICIARY

Home | Edu NEWS | Reserve Bank of India’s MPC updated

Reserve Bank of India’s MPC updated

During the bi monthly monetary policy presentation, the Reserve Bank of India's Monetary Policy Committee (MPC) said on Friday that a faster and stronger rebound in the economy was “eminently feasible” if the momentum the current recovery it is gaining ground.

  • MPC, which has kept key interest rates unchanged, said that real is expected to grow 20.6% in the first quarter of 2021-2022.

GDP stimulus

  • Projecting negative (-) growth of 9.5 percent of real GDP in 2020-2021, RBI Governor Shaktikanta Das said; “The deep contraction in the June 2020-2021 quarter was left behind us; Rays of light are visible in the flattening of the active workload curve across the country.
  • The policy panel said that real GDP growth in 2020-2021 is expected to be negative at (-) 9.8% in the second quarter of 2020-2021, (-) 5.6% in the third quarter and 0.5% in the fourth quarter.
  • “Real GDP growth for the first quarter of 2021-22 is set at 20.6%”, the panel said.
  • According to Das, the MPC has decided to view the current rise in as transitory and to address the most urgent need to revive growth and mitigate the impact of Covid. GDP fell 23.9% in the June quarter.

Inflation on the verge of falling

  • RBI projections indicate that inflation will approach the target in the fourth quarter of 2020-2021.
  • In the September 2020 RBI survey cycle, households expect inflation to decline slightly over the next three months, a hopeful sign that supply chains will rebound.
  • Retail trade inflation is projected at 6.8% for the second quarter of 2020-2021, 5.4-4.5% for the first six months of 2020-2021 and 4.3% for the first quarter of 2021-2022, the RBI said.
  • The MPC's assessment is that inflation will remain high in September printing, but will gradually decline towards the target in the third and fourth quarters.
  • Our analysis suggests that supply disruptions and associated spreads / margins are the main drivers of inflation. As supply chains are re-established, those gaps should dissipate, he said.

On the recovery

  • Das said the economy is likely to experience a three-speed recovery, with individual sectors showing variable rates, depending on the specific realities of the sector.
  • The sectors that “open their accounts” first should be those that have been resilient to the pandemic and are also labor intensive.
  • Agriculture and related activities; fast moving consumer goods; two-wheelers, passenger cars and tractors; drugs and pharmaceuticals; and electricity generation, particularly renewable energy, are among the sectors in this category.
  • The second category of “striking” sectors would include those in which activity gradually normalizes. The third category of sectors would include those that face “great efforts” but can save their sleeves.

On the economy

  • The Indian economy is entering a decisive phase in the fight against the pandemic.
  • Compared to pre-Covid levels, several high-frequency indicators point to a slowdown in contractions in various sectors of the economy and the emergence of growth impulses.
  • “Covid-19 has tried and exhausted our resources and our resilience. Our difficulties are not over yet and a further increase in infections remains a serious risk, “said Das.
Delhi University 5 Year Law Programs Registration Begins

Delhi University 5 Year Law Programs Registration Begins

Delhi University has started the registration process for 5 year law programs. Candidates applying for the 5-year law programs can…
Read More
Bar Council of India proposes to hold CLAT and declares NLU Consortium a non-statutory body

Bar Council of India proposes to hold CLAT and declares NLU Consortium a non-statutory body

The Bar Council of India, in a supplementary affidavit filed before the Delhi High Court, proposed to conduct the Common…
Read More
DU UG 2023 Admissions Process Expected to Begin End of May

DU UG 2023 Admissions Process Expected to Begin End of May

Admissions for undergraduate and graduate programs will be by CSAS (UG) 2023 and CSAS (PG) 2023. Delhi University plans to…
Read More
CUET UG 2023 Participating Universities | Central University of Karnataka

CUET UG 2023 Participating Universities | Central University of Karnataka

The Central Karnataka University will start admission for its undergraduate programs from May 21 this year. Admission to these UG…
Read More
AIBE XVII 2023 results published

AIBE XVII 2023 results published

AIBE XVII Result: Candidates have taken the exam can now check their result on the AIBE website: allindiabarexamination.com. AIVE…
Read More
CUET PG 2023 | Six universities join the CUET PG

CUET PG 2023 | Six universities join the CUET PG

2023: Interested and eligible candidates can apply until May 5 on the official website: cuet.nta.nic.in. The CUET PG…
Read More
AIBE XVII (17) 2023 result

AIBE XVII (17) 2023 result

Once released, candidates who have taken the AIBE XVII(17) 2023 exam will be able to check their score on the…
Read More
CUET UG 2023 Participating Universities |  Central University of Haryana

CUET UG 2023 Participating Universities |  Central University of Haryana

The university currently has eight schools and 34 departments that offers science and humanities programs. CUET-2023-Preparation CUET UG 2023: The…
Read More
CUET UG 2023 Participating Universities: BHU

CUET UG 2023 Participating Universities: BHU

CUET UG 2023: After Delhi University, BHU received the most applications among central universities. Here is everything you need to…
Read More
CUET PG 2023 to be held June 5-12

CUET PG 2023 to be held June 5-12

CUET PG 2023: Exams will be held daily from June 5-12, i.e. June 5, 6, 7, 8, 9, 10, 11,…
Read More

About Post Author