The Limits Of MPC Intervention - Time For Fiscal Policy To Decisively Lean With The Wind: SBI Research

A bird flies past power cables near the Reserve Bank of India headquarters in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

The Limits Of MPC Intervention - Time For Fiscal Policy To Decisively Lean With The Wind: SBI Research

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

SBI Research Report

As widely expected, there was no change in the key policy rate at the second Monetary Policy Committee meeting for this fiscal, with the central bank strongly emphasizing an accommodative stance as long as required to support the economy.

The Reserve Bank of India, however, reduced its projection of real gross domestic product growth for FY22 by 100 basis points to 9.5% consisting 18.5% in Q1 (earlier: 26.2%), 7.9% in Q2 (earlier: 8.3%), 7.2% in Q3 (earlier: 5.4%) and 6.6% in Q4 (earlier: 6.2%).

Interestingly, though RBI has reduced growth projections for Q1 and Q2 it has enhanced projections for Q3 and Q4, specifically Q3 by a large margin.

Click on the attachment to read the full report:

SBI Research Ecowrap RBI Monetary Policy June 2021.pdf

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