Governor’s Statement Says
- External debt/GDP ratio fell from 21.2 per cent in March 2021 to 19.9 per cent in March 2022, while net international investment position/GDP ratio (i.e. net claims of non-residents) improved from (-) 13.2 per cent to (-) 11.6 per cent over the same period. Debt service ratio declined from 8.2 per cent in 2020-21 to 5.2 per cent in 2021-22.
- The cumulative seasonal rainfall was 6 per cent above the long period average (LPA) as on August 4, 2022, with 30 out of the 36 sub-divisions receiving normal or above normal rainfall as against 28 sub-divisions last year.
- As of July 29, 2022, the total area sown under kharif crops was 2.2 per cent lower than a year ago. The storage in major reservoirs as on July 28 was 119 per cent of that in the corresponding period of last year and 139 per cent of the average during the last ten years.
- According to RBI survey, capacity utilisation in the manufacturing sector in Q4:2021-22 was 75.3 per cent relative to its long-term average of 73.7 per cent.
Aug 05, 2022. The Reserve Bank of India has increased the repo rate by 50 basis points to 5.4 per cent. To counter the rising inflation, it was expected that RBI is likely to hike policy rates today.
June 2022 was the sixth consecutive month when headline CPI inflation remained at or above the upper tolerance level of 6 per cent.
The much-needed decision was taken to curb rising inflation. With the current rate of 5.4%, the surge in interest rates may affect the home buyer’s budget.
The increase is anticipated to be temporary and may me stabilize once the economic condition improves.
According to recent report by IMF. India is expected to be amongst the fastest growing economies during 2022–23, which also says that “There is no question of India getting into recession.”
The Governor’s Statement says the pandemic and the war have ignited tendencies towards a greater fragmentation, reshoring of supply chains and retrenchment of capital flows, which will pose long-term challenges for both globalisation and the global economy.
This development has gone well for the market, which went up by 405 points during the day, hitting a high of 58,649, and a low of 58,244.
The index ended at 58,388, up 89 points or 0.15 per cent. The Nifty50, on the other hand, closed 16 points, or 0.09 per cent, higher at 17,397.Let here the though from the industry experts
It will be also interesting to see home buyers will see this announcement and what will be the impact of the upcoming festive season.
