While status quo on rates was expected, there was difference of opinion on stance, which was also left unchanged to focus on withdrawal of accommodation to ensure inflation aligns with 4% target.
Central bank’s rate-setting body felt that it was time to assess impact of past hikes, while also staying ready to increase interest rates again if needed, said RBI Governor Shaktikanta Das.
RBI is expected to raise its benchmark rate for the 7th consecutive meeting & leave the door open for more increases to bring inflation back within its target range, economists said.
Goyal was one of the 2 members who voted against a rate hike and for the policy stance to be changed to 'neutral' from the current 'withdrawal of accommodation' at the February meet.
Markets were expecting pause in rate hike cycle after 25 basis points hike but RBI gave no such assurance. Globally, too, central banks have continued to tighten monetary conditions.
While overall inflation is moderating, high and persistent core inflation remains a worry, as does the uncertain global growth & inflation environment, the governor said.
RBI governor Shaktikanta Das also projected a GDP growth of 6.4% for 2023-24; a reduced retail inflation at 6.5% for 2022-23; and 5.3% for the next fiscal.
The political trajectory is clear. Asim Munir is now prepared to convict and sentence Imran Khan for instigating a rebellion against the army chief, with no possibility of mercy.
RBI data shows 26 states and Union Territories couldn’t regain pre-pandemic foreign tourist footfalls in 2024, but domestic tourism surged 27 percent compared to 2019.
Of the total package, $649 million will be utilised for additional hardware, software, and support services, and the remaining for Major Defence Equipment (MDE).
None of Pakistan’s PMs has lasted 5 years. That the current PM has given Asim Munir 5 years shows that of all military dictatorships history has seen, Pakistan’s is most creative.
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