Over the next few days, two central banks will announce their policy stance.
The Reserve Bank of India (RBI) will announce its decision on Wednesday, after its Monetary Policy Committee (MPC) concludes its two-day meeting. The US Federal Reserve will announce its decision exactly a week later, after the Federal Open Markets Committee concludes its two-day deliberations. Both will be keenly watched.
But there the similarity ends. RBI must contend with an economy growing below potential. Latest numbers released by the Central Statistical Organisation (CSO) show the economy slowing. Though growth in GDP in 2016-17 was a respectable 7.1 per cent, gross value added during January-March 2017 was a dismal 5.6 per cent, the lowest in the past 16 quarters, barring the fourth quarter of 2013-14. Worse, the ratio of gross fixed capital formation to GDP, a measure of investment, has fallen to 28.5 per cent, the lowest in 16 quarters.
via The difference between RBI and US Fed puts additonal constraint on the former
aniltikotekar4sme.com 