RBL Bank Chief Economist Rajni Thakur Previews RBI Policy Decision

The transcript discusses the current state of economic growth and recovery in India post-COVID, highlighting the role of the RBI's monetary policy. It covers the pressures of inflation and the global energy crisis, and how these factors influence the RBI's decisions on interest rates. The potential risks of rate hikes on economic recovery are examined, along with the impact of Fed tapering on India's currency and economy.

What has contributed to the positive growth indicators in the economy post-COVID?

• Decrease in oil prices

• Reduction in global trade barriers

• High frequency indicators above pre-COVID levels

• Increased government spending

What is the RBI's approach to managing excess liquidity in the system?

• Increasing government borrowing

• Complete withdrawal of monetary support

• Stepwise approach to mopping out excess liquidity

• Immediate rate hikes

How does the RBI plan to handle short-term inflation spikes due to the energy crisis?

• By increasing interest rates immediately

• By tolerating them as a global phenomenon

• By increasing exports

• By reducing government spending

What is one of the biggest risks to economic recovery according to the transcript?

• Rising unemployment

• Decreased consumer spending

• Increased foreign investment

• Rate hikes

How does the RBI view the current inflation trajectory?

• As a major concern requiring immediate action

• As flat or mildly downward biased

• As unpredictable and volatile

• As stable and unchanging

What is the expected impact of Fed tapering on India's currency?

• Immediate appreciation

• Minimal impact due to broad-based growth

• No impact due to strong government policies

• Significant depreciation

What is the RBI's strategy to manage the impact of Fed tapering?

• Increase interest rates

• Increase import tariffs

• Reduce foreign reserves

• Proactive liquidity management