oppn parties RBI Prioritizes Inflation But Keeps Batting For Growth For Now

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  • Neha Bora was subsequently released and Dipke is to appear before a magistrate today at noon
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  • The Reserve Bank of India is considering further monetary tightening to counter capital outflows and increase the cost of betting against the rupee, according to bankers and analysts cited by Reuters. The measures follow recent rate increases and steps to drain liquidity as pressure on the currency and inflation concerns persist
  • India directed oil marketing companies to stop diverting sugar-based feedstocks for ethanol production in the 2026–27 supply year, according to a new tender issued on Friday. The companies have invited bids for 11 billion litres of ethanol made from alternatives including corn and broken rice, amid concerns about domestic sugar supplies and prices
  • Finance Minister Nirmala Sitharaman said India's trade imbalance with China was growing sharply and attributed the problem partly to restrictions on Indian goods and services entering the Chinese market. China subsequently said it was ready to work with India to address mutual economic and trade concerns; India's trade deficit with China reached $69 billion in the first half of FY2026–27, up 27% year-on-year
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  • India defeated Zimbabwe by four wickets in the opening women's T20 International in Raipur, taking a 1–0 lead in the three-match series. Deepti Sharma and Niki Prasad combined in an 82-run stand after India's top order collapsed, helping the hosts chase down Zimbabwe's total of 114 for five
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  • The Supreme Court issued notices to the Election Commission of India, Delhi Police and opposition leaders, including Rahul Gandhi and Akhilesh Yadav, in separate petitions concerning electoral-roll revision and protests held in Delhi on October 10–12. The court also directed the preservation of CCTV footage linked to allegations of police excesses
  • The Supreme Court ruled that a person converting from Hinduism to Islam cannot automatically claim backward-class reservation benefits in the new religious community solely on the basis of their previous caste status. The judgment upheld the Madras High Court's decision striking down a 2024 Tamil Nadu government order that permitted such certification for specified communities
  • The Election Commission of India ordered a Special Summary Revision of electoral rolls in 14 states and three Union Territories, using January 1, 2027, as the qualifying date for voter eligibility. The draft rolls are scheduled for publication on November 12, claims and objections will be accepted until December 11, and the final rolls are due on January 4, 2027
Delhi HC refuses to ban CJP's Tiranga rally at Central Park in Connaught Place today /////// Police says will control and regulate it /////// NDMC closes the park for the public on Friday and Saturday
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RBI Prioritizes Inflation But Keeps Batting For Growth For Now

By Sunil Garodia
First publised on 2022-04-08 14:34:23

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Author of Cyber Scams in India, Digital Arrest, The Money Trap and The Human Hack

The Monetary Policy Committee (MPC) of the RBI has maintained status quo on key policy rates and will continue to maintain the accommodative stance in its bi-monthly policy meeting for April. But it has revised the growth forecast for FY23 from 7.8% to 7.2% and also changed inflation projections to 5.7% from the earlier 4.5% mainly due to the war in Ukraine and the resultant upheaval in financial markets, high fuel and commodity prices and supply chain disruptions. It also prioritized inflation, as the other central banks across the world have been doing but without adopting a hawkish stance. RBI governor Shaktikanta Das said that "in the sequence of priorities we have now put inflation before growth. Stance continues to be accommodative and with an eye on withdrawal of accommodation."

The repo rate was maintained at the historic low of 4% while the reverse repo rate also remained at 3.35%. The standing deposit facility was activated with a rate 25 basis points below the repo rate and the marginal standing facility was kept at 25 basis points above the repo rate. The RBI also hiked the hold-to-maturity limit to 23% and said it would be brought down gradually to 19.5% in order to keep bond markets steady.

But after Das said that the bank will keep "an eye of withdrawal of accommodation", most analysts predict that the RBI will raise rates in the second half of FY23 and will also start squeezing out liquidity from the market. Yet, in this policy meeting, while the MPC has acknowledged the mischief high inflation can create, it has still chosen to bat for growth. This was best put by Churchil Bhatt, EVP & Debt Fund Manager at Kotak Mahindra Life Insurance Company who said that "the MPC has taken a timely step towards re-emphasizing its credibility as an inflation fighter without materially disrupting the growth impulse".

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