The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) just released its most recent review of the Monetary Policy.
“Global growth prospects are dampening,” according to the RBI. The financial markets are still defined by significant price fluctuations and volatility.
Governor of the Reserve Bank of India Shaktikanta Das listed ten items that, in his opinion, summed up the most recent Monetary Policy review that was revealed on December 8. Here is the brief summarization of the plan:-
- With $640 billion in foreign exchange reserves, the US offers a robust safeguard against global spillovers.
- The period between 2020- 2023 will be registered as the era of great economic flexibility.
- As seen in reports, India’s GDP growth remains active and still expected to rise a it a healthy rate of 7% the following.
- It is anticipated that the Current Account Deficit (CAD) will be moderate and easily financed.
- The strengthening macroeconomic foundations of the Indian economy and its ability to withstand powerful worldwide surges are reflected in the solidity of the Indian rupee.
- The Indian economy passed the summer of 2022 in terms of inflation, yet achieved great strides in reducing inflation. Monetary policy has been effective, as seen by the core inflation rate’s consistent reduction.
- It is anticipated that November’s Consumer Price Inflation (CPI) figures will be high. It is not possible to manage inflation automatically as the uncertainty over food prices is projected to confuse the future course.
- The financial sector’s balance sheet is still strong as stress indicators unique to certain sectors and institutions are being proactively observed and handled.
