Rising crude oil prices, fiscal slippage a concern, says Patel 

Rising crude oil prices, fiscal slippage a concern, says Patel 

Context

Reserve Bank of India Governor Urjit Patel voiced concern over rising crude oil prices and fiscal slippage, during the meeting of the fifth bi-monthly monetary policy review held earlier this month.

Uncertainties persist on fiscal, external fronts: RBI Governor

• The recent upturn in crude oil prices has emerged as a source of concern
• Several uncertainties, especially on the fiscal and external fronts, persist. It is, therefore, important to be vigilant
• The central bank released the minutes of the monetary policy committee meeting, on Wednesday.
• RBI maintained status quo for the second straight meeting, which was voted by five out of six members.
• The key policy rate or the repo rate is currently at 6%.

Fiscal slippage concerns linger on

• While the RBI has maintained a neutral stance on interest rate, one of the members of the committee, said the time had come to be ready to go on the front foot.
• Price pressures are no more confined to vegetables alone, as in previous readings; they are getting diffused across petroleum products, services, and into underlying inflation
• There seems little scope for accommodation or for change of stance at the present juncture