New Delhi, Aug 7: The Reserve Bank of India, in its July 2021 round of its Consumer Confidence Survey released today, said the consumer confidence remained “weak” in July and the current situation index stood around an “all-time low level” as most households reported lower incomes and a higher level of price as compared to a year ago.
The survey says driven by substantial improvements in the outlook for the general economic situation and employment scenario after the waning of the 2nd Covid-19 wave, the future expectations index (FEI) returned to the optimistic territory.
The sentiments on overall spending remained “unchanged” as higher spending on essential items were offset by a drop in non-essential expenditure. Consumers expect a further contraction in discretionary expenditure in the year ahead, the central bank said.
The Reserve Bank of India decided to keep the interest rates unchanged during the MPC panel announcement today. For the seventh consecutive time, the RBI left the interest rates unchanged, with the repo rate fixed at 4 per cent.
The MPC also decided to continue with the accommodative stance as long as necessary to keep the economy afloat amid the Covid-19 pandemic and inflation concerns.
The central bank revised the FY22 Consumer Price Index (CPI) inflation outlook upwards to 5.7 per cent from 5.1 per cent. It also projected GDP growth at 9.5 per cent for FY22. The apex bank projected the GDP growth for FY22 as follows: 21.4 per cent in Q1, 7.3 per cent in Q2, 6.3 per cent in Q3, and 6.1 per cent in Q4.
