The monetary policy committee’s (MPC) decision to keep the policy rate unchanged in its today’s meeting was not a surprise. This is so as it had taken the risk to reduce rates in its last meeting and the, then stated, threat of rise in inflation has actually played out. The threat was first stated by MPC in Feb’17 when its policy stance changed from “accommodative” to “neutral”. CPI since then has moved from about -0.5% in Feb to over 3% in Aug, in line with its projections, and there is not much reason to believe its projections would go wrong for the rest of the year. Continue reading
While the economy as a whole continues to go through the painful transition to GST, one section getting more impacted is the exporters. This is so since they receive considerable amount of money back as tax refund from the government and the same is getting postponed with the extension of deadline for filing of GST returns. So, how exactly has GST affected exporters more than others.?? A look at the issue..