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Highlights of comments by RBI deputy governor Patra at CII event

16 Sep 2021

New Update

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

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