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Recent Events

27th EGROW & ASSOCHAM Shadow MPC held on Mar 29

Key Takeaways
  1. The Fed, Bank of England and European Central Bank have significantly moderated their stance in increase of interest rates after the sudden collapse of Silicon Valley Bank (SVB) followed by First Republic Bank and Credit Sussie.
  2. It is expected that the growth rate of GDP of India for FY2024 may slow down to 5.6 percent compared to 6.8% in FY2023.
  3. Consumer Price Index (CPI) exhibited that inflation is around 6.44 percent while Consumer Food Price Index (CPFI) is 5.95 percent, both lower than the January figures suggesting a decelerating trend and are expected to come down in the coming months.
  4. On the fiscal front, both direct and indirect tax collection seems robust.
  5. Increasing interest rates is affecting the housing demand which is connected with nearly 275 industries with forward-backward linkages and may have a huge negative impact on the economy.
  6. The oil prices are moderating to USD 79 from USD 95 in January, 2023 implying a considerable reduction in import bill.
  7. The liquidity will tighten quite significantly in FY 24 and the fact of the matter is that banks are having funding issues. Therefore, RBI should have a look into the situation.

Recommendations and Detailed Views of EGROW SMPC

Board of Directors