Perspective on RBI MPC announcements By Mr. Animesh Agarwal, Tractor Junction
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Perspective on RBI MPC announcements By Mr. Animesh Agarwal, Founder & COO, Tractor Junction
The RBI has hiked rates for the third consecutive time since the month of May. The move will tame the inflation that has stayed above the 6% mark for six straight months in 2022. The upward rate revision by the RBI is a step in the right direction and will help ease inflationary pressures on the economy. The hike in rates will not impact the demand situation in a big way, as we have effectively gone back to the rates of the pre-COVID era witnessed in early 2020.
Stable inflation, within the central bank's range (2-6%) is crucial for farm sector income. Remember, The rural sector contributes nearly 30% to the overall GDP of the country, and with a huge source of employment. Credit growth, manufacturing activities, normal monsoon, and the RBI estimating FY23 GDP at 7.2% augurs well for overall economic growth.
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