Question: In the minutes of the August meeting, more open discussion rates were likely to drop, while the MPC’s statement explained more towards the round. What will be your message in the Care market to pause with Dovish tones?
Answer: Initially, my usual disclosure. Comments are my opinion, not MPC.
I do not think this is a mystery that all the options and options and their results are discussed thoroughly at the MPC meeting. The neutral strategic role was adopted to preserve the alternative. Former RBI Governor said the central bank should never say; Just like a monetary policy. My statement said, “Looking at the level of existing and developing uncertainty, it is difficult to improve a forward guidance.
Question: The market has the problem of fluid and the CRR will only put pressure to deploy funds on banks, at which time when the supply is not absorbed, especially the length. How would you respond to an overded criticism instead of sequence by MPC?
A: The management of the system liquidity is beyond the functioning of the MPC, but it is important for the primary goal of transmitting the policy rate to multiple interest rates. However, I would say that the RBI has deployed various tools to maintain operating and other short-term rates at a consistent level of financial policy. The pre-emptive CRR deduction will help to stabilize the liquidity of the system in the coming months when the surplus is expected to expect multiple drains. And the liquid level is still available to calibrate.
Question: The announcement of improving GST structure shows that this increase is the priority of the government at the risk of potential financial slips. Do you think this is to supplement this financial ease? How do you balance this if the inflation on the horizon is estimated to be more than 4%?
A: In principle, the monetary policy is always ready to support growth, but not at the cost of stability of the price. The proposed GST rate slab infection changes should initially decrease in the prices of most goods and services. However, high disposable income is likely to stimulate the demand for consumption, at least some goods and services are difficult to estimate the production, investment and the second round of growth.
It is important to keep in mind the final result of the GST re-consolidation on indirect tax collection and FISC. This will affect market interest rates. In addition, the results of the repo cut and the transmitted on credit demand can also be seen in the loan rate and then the lending rate. Higher credit offtech will definitely complement the financial policy stimulus.Question: The income has increased and the SBI has raised the upper band of the home loan rate – which can be seen on the margin as a rate of growth – do you think that sudden change in the neutral role was an error?
A: It was a deliberate decision to ignore the role of a neutral policy at the June policy meeting that after the front load rate deduction, continuous policy was not allowed; The pause was also an option. Say, say, a 10-year bond yield follows the sample of the reaction of the bond market for the alleged tip of the policy cycle. In addition, remember the previous rally when the income was almost 55 BPS falling from March to June. And a large part of the subsequent growth was not after the June policy (when the role was changed), but a recent one. In short, there are several factors behind the movement of rates. I will not comment on specific institutional decisions. However, bank flexible home loan rates are now connected to external benchmarks and will decrease the same as the repo rate. The adjustment of the spreads will make it possible to reduce rates, but they are business calls.Question: In the context of the uncertainty of the rates and in the context of global growth, will India have to settle down less than its ambitious growth rate? In the past, strong growth stages of growing exports had a strong relationship. Do you think that the RBI would have to consider reducing the rate of calendar year year, or will it be even pushed? A: The period of uncertainty and crisis has historically a catalyst for structural reforms in India, which has been going on for many years. I hope that the speed of solid structural reforms will be accelerated. As I mentioned in the beginning, it is impossible to provide any further guidance due to advanced uncertainty. All strategic options are on the table, including the problems of various trade balances to guide the policy response route. The impact on the development of the external environment will certainly be considered.
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