MUMBAI: After the country’s economy performed better than expected in the second quarter of the current financial year, all eyes are now on the Reserve Bank of India Governor Shaktikant Das. The industry is eager to know what steps it will take to help grow. The three-day Monetary Policy Committee meeting will begin on December 2. It will take into account the current state of the economy and decide whether the interest rate repo rate will increase, decrease or maintain the status quo. In the first three months of the current fiscal year (April-June), the country’s growth slowed by as much as 23.6% due to the stalled economic downturn due to the lockdown announced for the Corona epidemic. In the second quarter, however, there was a rapid improvement. Growth slowed by 7.5% in the July-September quarter compared to last year. Experts have begun to speculate that the GDP is expected to fall as low as expected in the current fiscal year as the economic performance is encouraging. But no one can deny the significant contribution made by the Reserve Bank to the steps that have taken place in the wake of the reforms. Everyone wants the situation to get better. That’s why everyone is looking forward to Governor Shaktikant’s next move. A few days later, Shaktikant predicted that the economy would improve beyond expectations. This is clearly reflected in the GDP growth data released by the central government’s National Statistics Office. Between July 2018 and August 2020, the Reserve Bank cut its rate by 2.5 percent. Many goods in the country still have high prices, while transportation and transportation costs are high. The tax burden is also a problem. In view of all this, the Reserve Bank may consider increasing its inflation target, Barclays said.
