Economic activity to pick up in Q4 due to faster remonetisation: Urjit Patel

RBI Governor Dr. Urjit Patel expects that economic activity to pick up in this last quarter because of faster remonetisation and return of discretionary consumer demand. In a statement made during the Monetary Policy Committee meeting earlier this month, Dr. Patel further said that data from corporate sector also suggests that sales growth may have improved. 

As per the Minutes of the meeting made public on Wednesday, Dr. Patel had said that shifting of monetary policy stance from accommodative to neutral will



provide sufficient flexibility to move the policy rate in either direction. 

In his statement, MPC Member and RBI Deputy Governor Viral V Acharya had said that it is important to guard the Indian macro-economy from global headwinds and have a reasonably good chance of attaining the 5 percent target for headline inflation by end of March 2017. 

Stating that inflation outlook remains clouded, all the six members of the Monetary Policy Committee had voted for a status quo on interest rates.