The Hindu Editorial Analysis : 11th December 2023

The Hindu Editorial Analysis

The Importance of Reading The Hindu Editorial: Reading The Hindu newspaper has several benefits, including improving reading skills, facilitating comprehension, staying informed of current events, enhancing essay writing, and more. For individuals aiming for a career in banking, reading editorials is crucial for vocabulary building. In this article, we will examine today’s editorials, provide practice questions, and highlight important vocabulary words.

Falling backward: A view on Monetary Policy Committee:

• RBI has recently decided to not to change the repo rate in the latest Monetary Policy Committee.
• Along with the hold of benchmark interest rates, RBI has also forecasted the GDP rate 50 basis point more than the last projection.
• According to the author this decision of the RBI is falling behind the speeding inflation and it is replete with the risk of policymakers associated with inflation.
• RBI has also observed uncertainty in food prices and base effects are also not in favor of the economy and this situation is expected to lead in upcoming months.
• Headline inflation is also going to be high in November and December 2023.
• Despite all the odds,RBI has decided to not to change the repo rate 6.5% straight fifth bi monthly meeting.
• According to the author’s point of view there is no doubt that inflation after the last meeting of MPC has come near to the RBI limit. Whereas in August it was 6.83%, in October it has softened by two points and came in the range of 4.87%.
• As per the MPC calculation,this moderation of inflation rate is not stable because the acceleration in prices occurred in November and December.
• The unstableness of the oil market and financial markets is also one of the factors of high inflation in upcoming months.
• According to the latest report, the Households’ Inflation Expectations Survey released by RBI in the month of November stated that most of the households are going to expect high inflation in the upcoming time frame of one year from now.
• MPC has decided to change the GDP growth forecast by 50 basis points. In October it was 6.5% and in the latest Monetary Policy Committee it is projected 7%.
• For real 7% GDP growth needs robust investments, strengthening infrastructures, stable constructions, high rural recovery and other things.
• From May 2022 to February 2023, RBI has increased the repo rate 250 basis points.

Important Questions:

1. What is the current repo rate?
2. Is the RBI’s decision not to change the repo rate justified or not? Describe your views.

Important vocabs:

1. Replete: filled with something
2. Impeding: hindering
3. Reckoning: calculating or estimating something
4. Dissonance: lack of harmony
5. Buoyancy: A cheerful and optimistic attitude

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