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FACTBOX: India's Monetary Policy Committee minutes of meeting

Reuters 

(Reuters) - The of India's newly appointed Monetary Policy Committee (MPC) meeting, released on Tuesday, showed that broad concerns over economic growth and relief from the pullback in inflation, spurred the bank's recent rate cut decision.

Here are edited excerpts from the views of the six members.

URJIT PATEL, GOVERNOR, RESERVE BANK OF INDIA:

** Indicators of economic activity pointed to a subdued outlook, though gradually improving.

** Low capacity utilisation and persistence of the output gap suggested pricing power is likely to remain low.

** Some confidence that the target of 5 percent for March 2017 can be achieved.

** Calibrated policy judgement was warranted as some space for policy action opened up with the fall in August inflation.

** outcomes in Jan-March will have to be carefully and continuously monitored as upside risks albeit lower than before, persist.

R. GANDHI, DEPUTY GOVERNOR, RESERVE BANK OF INDIA:

** Risks to from global factors may be easing

** Maximum comfort coming from softening pulse prices, good monsoon to further help in taming food inflation.

** Supply management by the government will be critical to influence space for monetary policy actions.

** While the pace of economic growth expected to gain gradual momentum, private investment cycle remains depressed.

** Rate cut to help in stimulating investment demand while also easing pressure on balance sheets of companies.

M.D.PATRA, EXECUTIVE DIRECTOR, RESERVE BANK OF INDIA:

** Several parts of economy languishing, but other parts mending and coming together for a potential revival.

** Level of forecast for Jan-March 17 is closer to target than before.

** Not to say that the beast has been beaten or its back broken, but there is a turn in its momentum that is exploitable.

** Crucial, however, to step up vigil around the upturn in projected in the last quarter of 2016-17.

CHETAN GHATE, ASSOCIATE PROFESSOR, INDIAN STATISTICAL INSTITUTE:

** Persistence of core remains a concern

** Upside risks to meeting 5 pct CPI by March 2017 remain, but these are acceptable risks.

** Expectations of future closer to target, expected to contribute to low and stable inflation

** Signs of revival of economic activity, which needs to be nurtured.

** With persistent slack in the economy on unutilised capacity, corporate pricing power remains weak.

PAMI DUA, DIRECTOR, DELHI SCHOOL OF ECONOMICS:

** Modest softening of and expectations, lacklustre private investment spending and unused capacity provides window for policy rate cut.

** Good time to support growth by reducing the policy rate.

RAVINDRA DHOLAKIA, PROFESSOR, INDIAN INSTITUTE OF MANAGEMENT:

** Probability of turning up from the current level reasonably less.

** Good chances for consumer to soften further substantially on good monsoon, government steps.

** Potential growth path of Indian economy gradually moving up, particularly in response to government reform measures.

** Do not see major risk to if output gap closes fast as there is substantial under-utilisation of capacity.

(Compiled by Devidutta Tripathy; Editing by Louise Ireland)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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FACTBOX: India's Monetary Policy Committee minutes of meeting

(Reuters) - The minutes of India's newly appointed Monetary Policy Committee (MPC) meeting, released on Tuesday, showed that broad concerns over economic growth and relief from the pullback in inflation, spurred the bank's recent rate cut decision.

(Reuters) - The of India's newly appointed Monetary Policy Committee (MPC) meeting, released on Tuesday, showed that broad concerns over economic growth and relief from the pullback in inflation, spurred the bank's recent rate cut decision.

Here are edited excerpts from the views of the six members.

URJIT PATEL, GOVERNOR, RESERVE BANK OF INDIA:

** Indicators of economic activity pointed to a subdued outlook, though gradually improving.

** Low capacity utilisation and persistence of the output gap suggested pricing power is likely to remain low.

** Some confidence that the target of 5 percent for March 2017 can be achieved.

** Calibrated policy judgement was warranted as some space for policy action opened up with the fall in August inflation.

** outcomes in Jan-March will have to be carefully and continuously monitored as upside risks albeit lower than before, persist.

R. GANDHI, DEPUTY GOVERNOR, RESERVE BANK OF INDIA:

** Risks to from global factors may be easing

** Maximum comfort coming from softening pulse prices, good monsoon to further help in taming food inflation.

** Supply management by the government will be critical to influence space for monetary policy actions.

** While the pace of economic growth expected to gain gradual momentum, private investment cycle remains depressed.

** Rate cut to help in stimulating investment demand while also easing pressure on balance sheets of companies.

M.D.PATRA, EXECUTIVE DIRECTOR, RESERVE BANK OF INDIA:

** Several parts of economy languishing, but other parts mending and coming together for a potential revival.

** Level of forecast for Jan-March 17 is closer to target than before.

** Not to say that the beast has been beaten or its back broken, but there is a turn in its momentum that is exploitable.

** Crucial, however, to step up vigil around the upturn in projected in the last quarter of 2016-17.

CHETAN GHATE, ASSOCIATE PROFESSOR, INDIAN STATISTICAL INSTITUTE:

** Persistence of core remains a concern

** Upside risks to meeting 5 pct CPI by March 2017 remain, but these are acceptable risks.

** Expectations of future closer to target, expected to contribute to low and stable inflation

** Signs of revival of economic activity, which needs to be nurtured.

** With persistent slack in the economy on unutilised capacity, corporate pricing power remains weak.

PAMI DUA, DIRECTOR, DELHI SCHOOL OF ECONOMICS:

** Modest softening of and expectations, lacklustre private investment spending and unused capacity provides window for policy rate cut.

** Good time to support growth by reducing the policy rate.

RAVINDRA DHOLAKIA, PROFESSOR, INDIAN INSTITUTE OF MANAGEMENT:

** Probability of turning up from the current level reasonably less.

** Good chances for consumer to soften further substantially on good monsoon, government steps.

** Potential growth path of Indian economy gradually moving up, particularly in response to government reform measures.

** Do not see major risk to if output gap closes fast as there is substantial under-utilisation of capacity.

(Compiled by Devidutta Tripathy; Editing by Louise Ireland)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

FACTBOX: India's Monetary Policy Committee minutes of meeting

(Reuters) - The of India's newly appointed Monetary Policy Committee (MPC) meeting, released on Tuesday, showed that broad concerns over economic growth and relief from the pullback in inflation, spurred the bank's recent rate cut decision.

Here are edited excerpts from the views of the six members.

URJIT PATEL, GOVERNOR, RESERVE BANK OF INDIA:

** Indicators of economic activity pointed to a subdued outlook, though gradually improving.

** Low capacity utilisation and persistence of the output gap suggested pricing power is likely to remain low.

** Some confidence that the target of 5 percent for March 2017 can be achieved.

** Calibrated policy judgement was warranted as some space for policy action opened up with the fall in August inflation.

** outcomes in Jan-March will have to be carefully and continuously monitored as upside risks albeit lower than before, persist.

R. GANDHI, DEPUTY GOVERNOR, RESERVE BANK OF INDIA:

** Risks to from global factors may be easing

** Maximum comfort coming from softening pulse prices, good monsoon to further help in taming food inflation.

** Supply management by the government will be critical to influence space for monetary policy actions.

** While the pace of economic growth expected to gain gradual momentum, private investment cycle remains depressed.

** Rate cut to help in stimulating investment demand while also easing pressure on balance sheets of companies.

M.D.PATRA, EXECUTIVE DIRECTOR, RESERVE BANK OF INDIA:

** Several parts of economy languishing, but other parts mending and coming together for a potential revival.

** Level of forecast for Jan-March 17 is closer to target than before.

** Not to say that the beast has been beaten or its back broken, but there is a turn in its momentum that is exploitable.

** Crucial, however, to step up vigil around the upturn in projected in the last quarter of 2016-17.

CHETAN GHATE, ASSOCIATE PROFESSOR, INDIAN STATISTICAL INSTITUTE:

** Persistence of core remains a concern

** Upside risks to meeting 5 pct CPI by March 2017 remain, but these are acceptable risks.

** Expectations of future closer to target, expected to contribute to low and stable inflation

** Signs of revival of economic activity, which needs to be nurtured.

** With persistent slack in the economy on unutilised capacity, corporate pricing power remains weak.

PAMI DUA, DIRECTOR, DELHI SCHOOL OF ECONOMICS:

** Modest softening of and expectations, lacklustre private investment spending and unused capacity provides window for policy rate cut.

** Good time to support growth by reducing the policy rate.

RAVINDRA DHOLAKIA, PROFESSOR, INDIAN INSTITUTE OF MANAGEMENT:

** Probability of turning up from the current level reasonably less.

** Good chances for consumer to soften further substantially on good monsoon, government steps.

** Potential growth path of Indian economy gradually moving up, particularly in response to government reform measures.

** Do not see major risk to if output gap closes fast as there is substantial under-utilisation of capacity.

(Compiled by Devidutta Tripathy; Editing by Louise Ireland)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

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