As MPC raises growth projections, what makes the panel so optimistic?

The MPC believes that there is growth momentum due to better farm production, government policies to boost capex, improvement in business and consumer sentiment

Contrary to popular interpretation, the monetary policy committee (MPC) did not cut projections for the gross domestic product (GDP) growth but raised it in its September policy review compared to that in the August review.

Given the growth rate of 13.5 per cent in the first quarter, the growth rate would have fallen to 6.6 per cent for the current financial year if the MPC had retained projections for the next three quarters. The panel raised it to 7 per cent by increasing the growth rates in each of the next three quarters. The raise was significant at 50 basis