A tightrope walk for monetary policy panel

Why is it in the news?
  • The deliberations on fifth bimonthly monetary policy have started.
  • The current economic scenario makes the December policy review for monetary policy members complicated.
More in the news
  • Growth Not Revived:
(1) Despite a 135-basis point (bps) reduction in the policy rate since February, growth has not revived.
(2) In fact, the country’s GDP growth dipped further in the July-September quarter to 4.5% the lowest in 26 quarters.
  • Inflation Rising:
(1) Consumer price index-based inflation was at a 16-month high of 4.62% in October, higher than the central bank’s medium-term target of 4%.
(2) The rise in inflation was mainly driven by increase in food prices.
(3) Consumer food price inflation, which amounts to half of the inflation basket, increased to 7.89% compared to 5.1% in the previous month.

  • This makes the December policy review for monetary policy members complicated.
Source
The Hindu.
Posted by Jawwad Kazi on 4th Dec 2019
<< Previous Next >>