GJ Town India

The risk of global shocks remains! Colin Shah   In a Monetary Policy Statement, 2023-24 Resolution of the Monetary Policy Committee (MPC), on the basis of an assessment of the current and evolving macroeconomic situation, the MPC at its meeting decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent. The standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.  These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.    On the RBI policy perspective, Colin Shah, MD, Kama Jewelry expressed that, “the RBI's decision to hold rates is a p

MSF rate and the Bank Rate to 4.65 per cent . RBI said, as the war draws on and sanctions and retaliatory actions intensify, shortages, volatility in commodity and financial markets, supply dislocations and, most alarmingly, persistent and spreading inflationary pressures are becoming more acute with every passing day. Debt distress is rising in the developing world amidst capital outflows and currency depreciations. Recent GDP releases suggest that the global economic recovery is losing pace.   By announcing the Decisions and Deliberations of the Monetary Policy Committee (MPC), RBI Governor Shaktikanta Das said, “against this backdrop, the Monetary Policy Committee decided to hold an off-cycle meeting on 2nd and 4th May, 2022 to reassess the evolving inflation-growth dynamics and the impact of the developments after the MPC meeting of April 6-8, 2022.” Based on this assessment of the macroeconomic situation and the outlook, the MPC voted unanimously to increase the policy repo ra