RBI’s fifth bi-monthly monetary policy for the financial year 2017-18 has released on 6th December 2017. The fourth review of monetary policy of RBI was released in the first week of October. This time the six- member monetary policy committee (MPC), headed by Governor Urjit Patel kept key interest rate unchanged. The decisions were widely predicted by top economist.
RBI’s Key Interest Rates: Highlights of Fifth bi- monthly Monetary Policy
RBI’s Growth prediction for Financial Year 2017-18
What is Gross value added (GVA)?
Gross Domestic Product (GDP) , estimated by Central Statistics Organisation (CSO) is a measure of economic activity in the country. It is total value of an annual output of goods and services produced in the country. Two years back, Central Statistics Organisation (CSO) introduced a new method to calculate growth numbers. This new method is different in many ways from earlier method.
“Gross value added (GVA) is defined as the value of output less the value of intermediate consumption. Value added represents the contribution of labour and capital to the production process. When the value of taxes on products (less subsidies on products) is added, the sum of value added for all resident units gives the value of gross domestic product (GDP).”
The RBI too considers only GVA to interpret its economic projections in its monetary policy reviews.
RBI’s Fifth bi-monthly Monetary Policy: Highlights
Do you Know?
Consumer Price Index (CPI) is a measure of change in retail prices of goods and services consumed by specific group of people in a given area with reference to a base year. The CPI number measures changes only in one of the factors; prices. This index is an important economic indicator and is widely considered as a barometer of inflation. It is used as a measure of inflation in around 157 countries.
The next bi monetary policy will be released in February 2018.
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