Monetary Policy Meeting With No Novice Berating

Monetary Policy Meeting With No Novice Berating

At Monetary Policy Meeting for 2023 the RBI upped the growth forecast to 7 percent; the policy rate not touched it remains as it is at 6.5 per cent and some wondering would this release series of cushion with right intention.  As this piece of news with signals emitting of truce came out the reaction from those who watch the markets and inflation jacket largely maintained that if growth momentum is to be sustained it would one way or other hit the base of firefighting measures to calm inflation and the wobbling picture some won't find sane. The policy rate unchanged primarily means those who have availed loans their EMIs if not dropping won't remain the same bound to increase and with onset of Winter some sure to sneeze. Winter we expect mild to stay as it affects the bread and butter of those who slog day in day out and are in earning meagre income fray. They may not have taken loans given less income dose but the retail inflation is not going anywhere and sure to release in part sentiments of rue and fear. 

RBI Upbeat And Would 2024 Bring The Treat?

This Monetary Policy Meeting the last in 2023 and RBI being upbeat as there are still more than 21 days for year to draw to a close and gauge the impact of MPM brief. The growth forecast at 7 per cent literally means to expect from construction and manufacturing sector to ramp up growth; the services sector not logging behind and may tend to port. Keeping sustained growth momentum and keeping inflation in check are twin challenges if policy rate is in same bucket. In the first half of 2024 or perhaps earlier than that it would become amply clear whether the forecast and those who don't want any sort of backset on 7 per cent target would come true or some section of populace may be beset with job hopping to keep away career blues. The first half of 2024 may spell surprise on inflation front as policy rate hasn't changed a bit and to combat rising inflation in single digit remedial measures may be called in to pitch tent. That perhaps may lead to a change in policy rate with all signs it going upward and none to be labelled coward. 

First Half Of 2024 To Have Revelation Of Sorts

The first half of 2024 would have revelations of sorts with policy mandarins doing piggyback advertising to make the populace understand that if retail inflation is rising it is once in a lifetime happening and would get corrected with measures to set in soon perfected. For EMIs to blink it may be by a short degree as rate has remained unchecked and if EMIs are shooting it may have a close resemblance to banks balance sheet wavering and to set it right they took to the route of fiddling on a massive scale with EMIs which wasn't justified by any means and these banks future road looks less bright. The middle class patience for long has been tested and time is ripe for banks to show transparency even if in dozens remittances are coming in varied currencies. Transparency is the need of the hour and this RBI well understands and wants banks to have this splendid tower. Headline inflation is expected to be 5.4 per cent up from 5.1 per cent and the route CPI takes in the coming months may bring in new set of assessment okayed by ladies and gents. 

YEDU KONDALWADA VENKATRAMNA GOVINDA GOVINDA