The format of Reserve Bank of India?s first mid-quarter review of monetary policy this month will be simplicity itself ? a two-or-three-page statement, released to the press.
That will be the form of the communication of RBI governor D Subbarao?s policy review that moves on September 16 ? but not its contents, which could as usual, spell out concerns, worries, achievements, strike notes of caution and, finally, list steps on the monetary front and directions to banks.
Beginning September 16, RBI will release each fiscal year four ?mini? reviews in addition to the annual statement (usually in the first month of each fiscal year) and three quarterly reviews that follow in July, October and January.
The mini-review programme is Subbarao?s innovation to the central bank?s policy programme. Five-years-ago, his predecessor introduced quarterly reviews, the first in July, the second or the mid-term review in October, and the third in January.
With the mid-quarter reviews, eight policy days will now mark the central bank?s calendar each fiscal year, or a policy every six weeks.
What?s new?
The four of the eight events will be big affairs ? involving meetings with bankers, press conferences, television interviews and couple of booklets setting out the review, the diagnosis, the prognosis, and prescriptions.
Nevertheless, expect a brief assessment of the economy?s progress in the six weeks since the July 27 review. A listing of macro-economic indicators such as inflationary pressures, liquidity situation, robust economic growth, the uncertain global scenario, bank credit and deposit growth, and finally, the most-watched for action on interest rates.
FE initiative with TickerNews inputs