The long-term repo operations are not intended to replace OMOs. There is space for action, and MPC will act in time, perhaps act ahead of time, as it was done in 2019.Īs you have announced long-term repos in policy (1-year and 3-year), is it only Rs1 lakh crore or will it be done systematically? Does this mean it will replace OMOs? I said MPC will closely monitor the situation and act in a proactive manner. Inflation was full of surprises last year, especially food inflation. How should one read into that? Will there be policy action if inflation remains in the projected range of RBI? The policy statement mentions that the outlook on inflation remains uncertain. MPC has been proactive in 2019 and will continue to do so in 2020. The policy space is available for a rate cut, but it will depend on the evolving situation. So many other factors also play their role. On that basis, the monetary policy action will be taken by MPC at that time. So, once the downward slopes start, we have to see how quickly it plays out. We’re expecting headline inflation to fall. Is it enough for a rate cut action in next policy? Or are you looking at a CPI level of 5.5% or 5% to take action? Govt asks traders to expedite pulses imports from Myanmar
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