Thread by @Sanju_Verma_

RBI credit policy on 4thDec raised GDP forecast for FY21,from minus 9.5% to minus 7.5%;GDP growth will turn +ve in Q3 at 0.1%&0.7% in Q4

Remarkable speed of the turnaround amidst worst pandemic in 102yrs has lots to do with @narendramodi govt's blistering pace of Agri #Reforms💪

CPI in Sep&Oct'20 came in at 7.3%&7.6% and that is precisely why RBI did not lower rates&rightfully so

WPI came at 1.32%&1.48% in Sep&Oct 2020

Supply disruptions&labour shortages,key reasons for high CPI

CPI will fall to 6.8% in Dec&5.8% in Jan2021

Accommodative stance by RBI

Inflation target for 1HFY22 by RBI has been kept@4.6-5.2% range

Core inflation is sticky,feeding into high inflationary expectations but resumption of normality will ease supply bottlenecks&ease #Core

#Accommodative stance leaves window open for rate cuts,albeit not immediately

#REPO at 4% is lowest since 2000,aiding MSMEs

#ReverseREPO at 3.35% is lowest since 2010

MSF& #BankRate at 4.25%,at decadal lows,showcase how flattening yield curve is being used to boost growth by @narendramodi govt&rightfully,so

#CPI should ease due to record #Kharif harvest

Not lowering rates is right thing to do,as there is excess liquidity in banking system,of a huge Rs 7 lakh Cr

Plus surging Forex reserves anyways akin to a soft rate scenario in many ways

RBI has been conducting #ReverseRepo operations to cushion impact of rising forex kitty