MPC's stance disconnected from reality: Jayanth R Varma
RBI monetary policy committee's stance to remain focused on 'withdrawal of accommodation' is becoming more and more disconnected from reality, says Jayanth R Varma
RBI monetary policy committee's stance to remain focused on 'withdrawal of accommodation' is becoming more and more disconnected from reality, says Jayanth R Varma
MPC cuts its inflation forecast for 2023-24 to 5.1% from 5.2% projected earlier
Monetary Policy Committee's external members cautioned about early signs of a slowdown.
Monetary policy should not be conducted by looking at the rear view mirror, says Varma.
The very purpose of MPC is defeated if it handles policy interest rate without sound evidence and reasoning or gets influenced.
The decision to pause is for this meet only, says RBI governor Shaktikanta Das.
CREDAI has urged the RBI to not increase the repo rate any further.
"We need to give time for our past policy actions to work through the system," says RBI governor Shaktikanta Das.
Rate-sensitive stocks slipped in red as the central bank raised the repo rate for the sixth time in a row, which is likely to impact consumption and demand for loans.
As per the RBI data, between the April and October period this year, the foreign direct investment (FDI) flows stood at $22.7 billion as against $21.3 billion in the same period last year.