labels: rbi, economy - general, banking & finance policies
Mid-term Review of the macro-economy news
Our Economy Bureau
29 October 2002

Mumbai: The Mid-term Review of Monetary and Credit Policy for the year 2002-03 begins with the mid-term review of the macro-economy. This gains prime importance at this juncture, wherein there is lot of uncertainty about the direction of the economy.

To have a better understanding as to where the economy stands today it is best to have a look at the positive and negative factors affecting growth and then drawing a conclusion.

Positives

Negatives

Industrial growth picks up

Infrastructure industries growth slumps in September 2002

Exports growth booms

US and global economic recovery still uncertain

Non-Food Credit picks up, total flow of resources from SCBs also rise

Non-Food Credit picks up could be due to retail borrowing. Excluding the impact of mergers, scheduled commercial banks credit down, Food credit declined

Foreign exchange reserves rise

Oil Prices surge

Orderly conditions in forex market

Bank lending rates show resistance to further cuts

Government borrowing at a substantially lower cost

The Governments budgeted borrowing programme may get affected

Fiscal deficit lower

 

Drought effect minimised

The impact of the drought more severe than expected

Inflation has been moderate

Business/ Investor Confidence seems to be tapering

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Mid-term Review of the macro-economy