Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
June 25, Sunday 2017 10:45 PM       

       HEADLINES: Handwriting is not that of Pulsar Suni’s, Dilip’s statement to be recorded                                              Woman tied to tree and assaulted, an insult to state, says Chennithala                                              Telephonic conversation between Dilip’s manager and Vishnu exposed                                              Unexpected hurricane at Kundamkulam                                              K R Mohanan dies                                              Five more TN fishermen arrested by Sri Lankan Navy                                              Modi greets nation on Eid, says diversity is India's strength                                              123 killed, 100 injured as oil tanker explodes in Pak                                              Malaysia-bound AirAsia flight ‘shaking like washing machine’ returns to Aus                                              Shiv Kapur makes cut, but slips to T-42nd in Germany                                              Super Srikanth lifts Australian Open Super Series                                              BAI announces Rs 5 lakh for Srikanth                                              Kaumudi Facebook
       BUSINESS Next Article: RBI keeps key rate unchanged; cuts SLR, lowers GDP projection  
       RBI: Note ban didn't impact growth; need clarity on inflation
         Posted on :22:13:56 Jun 7, 2017
       Last edited on:22:13:56 Jun 7, 2017
         Tags: RBI: Note ban didn't impact growth; need cla
MUMBAI: Demonetisation has not led to lower economic growth, RBI said today while citing "surprises" like dip in inflation as well as GDP growth for maintaining status quo on policy rates.
"Data shows that the slowdown in economic activity set in during Q1, FY17, well ahead of demonetisation," Governor Urjit Patel told reporters, reacting to the dip in growth in the revised growth figures released by CSO.
He also gave out numbers to support the claim including resilience in the cash-dependent mining and quarrying, rural wages continuing to be elevated and sturdiness in other sectors like manufacturing, electricity, hotels, transport and communication in the second half of last fiscal, 2016-17.
Deputy Governor Viral Acharya said it was lack of clarity in the narrative, where there have been "surprises" in dip in inflation to 3 per cent in April and the revision in growth to 6.1 per cent by CSO.
"We have a combination of a big surprise in the inflation number as well as the CSO revisions. We are just trying to get a finer grip on what is exactly happening in the economy over the next few months," he said.
He said RBI has revised down its estimate on inflation projection to 3.5-4.5 per cent for H2 FY17 as against the 5 per cent earlier, and will wait for more clarity before acting upon rates.
"We need to see through the next couple of months data to see if inflation remains within these medium term projections that we have or whether its a surprise even relative to these revised projections," he said.
Patel said the inflation number may have come lower due to lingering of the transitory effect that has kept it low since November and also on supply glut conditions in respect of pulses, cereals and vegetables.
"With so many moving parts and the outlook clouded with uncertainties, the Monetary Policy Committee (MPC) decided by vote of five to one to stay on hold and wait for greater clarity to emerge with incoming data," he added.
He was, however, quick to add the risks to inflation like rising rural wages, robust consumption demand and imminent implementation of 7th pay panel report due to which RBI decided to stick to its neutral stance and go for a status quo.
"The inflation outcomes really reflect a combination of factors which are really difficult to disentangle at this stage with just one data point," executive director Michael Patra, also a member of the MPC, said.
"We need to really unravel these effects and then take policy action. Not at a state where the outlook is very blurred," Patra added.
When asked if the dissenting view on the MPC -- one member was not in favour of the majority decision -- represents a maturing of the panel, Patel said it reflects a "wait and watch" approach.
"It strongly suggests that a wait and watch approach has been taken and the diversity of the views that are in the MPC constitution has meant that we did have a vote that was not unanimous," he said.
Post your comments
Next Article: RBI keeps key rate unchanged; cuts SLR, lowers GDP projection
Rupee halts 3-day slide v/s USD; up 7 paise at 64.52  
Spice GST Suvidha provider is all geared up for July 1st  
Sensex tumbles 153 pts on profit-booking  
Sensex hits all-time high of 31,522  
RBI to keep rates unaltered in near term: D&B  
Sensex surrenders record gains on GST blues, mixed global cues  
GST to be rolled at midnight June 30: Jaitley  
India plans SAARC meet for startups: Nirmala  
Rupee gains 11 paise against dollar, stocks play anchor  
"Rs 700 cr worth of Momentum Jharkhand proposals implemented"  
JK govt to seek complete consensus before GST implementation  
Mobile data consumption rose 142% in last 3 yrs: Kant  
Gold loses sheen on weak global cues, muted demand  
Rupee opens lower by 15 paise against dollar  
Nifty ends below 9,600 post Fed rate hike  
Paytm, 1mg offer discounts ahead of GST  
Customers may get Rs 5,000 if int'l SIM card fails  
Sensex closes higher, Nifty advances as inflation cools  
RBI issues new Rs.500 bank notes with inset letter 'A'  
Govt close to resolution on stressed power projects: Goyal  
Inflation at record low of 2.18%; factory output slows to 3.1%  
Cut down on salads to save costs: AI staff  
GST: Lowers tax for 66 items, price of coir and cashew to go down  
GST Council revises rates for cinema tickets  
GoAir to launch additional flight on Delhi-Patna route  
Actress case: Do you think Pulsar Suni's letter is part of a conspiracy?
don't know
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy