By a Staff Reporter:
* Incoming data suggests global recovery may be faltering
* India economic recovery appears broad-based so far
* Apr-Jun economic growth almost in line with RBI forecast
* Markets are seeking reassurance on definitive course of policy
* Glide path should take CPI to 5.7% in FY22
* Glide path should take CPI to below 5% in FY23
* Surveys point to increase in selling prices going ahead
* Economic output substantially below pre-pandemic levels
* Supply augmenting steps will elevate cost pressure on CPI
* Easing of headline CPI likely to be grudging, uneven
* Repetitive shocks giving inflation persistence character
* Contribution to CPI emanating from small group of items
* Wage pressures building up in organised sector
* House rentals are subdued, rural wages muted
* Sacrifice of output is price for price stability
* MPC remains committed to price stability
* Credit channel broke down during COVID due to low demand
* RBI prefers reduction in surplus liquidity via credit growth
* Recent reverse repo operations are not accommodation withdrawal
* Any accommodation withdrawal to be conveyed via stance
* RBI will remain in liquidity-surplus mode
* Asymmetrical liquidity corridor not cast in stone
* On repo-reverse repo spread: Pandemic needs out-of-the-box steps
* MPC decides rates, RBI has to implement monetary policy
* Liquidity management operationalises monetary policy
Source : Eureka
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