Present disappointing, future tense
Alongside the monetary policy statement, the RBI released the results of few forward looking surveys. The surveys, especially the consumer confidence survey, highlight the despondency prevailing in the economy. These surveys totally belie the apologetic 25bps repo rate cut and argue for a "significant" policy intervention. 1. Consumer confidence survey (i) Consumer confidence weakened in September with both the current situation index (CSI) and the future expectations index (FEI) recording declines. (ii) Households’ sentiments on the general economic situation and the employment scenario declined further, and they were less optimistic on their income over the year ahead than in July 2019. (iii) Respondents perceived an increase in the price level over the last one year and a majority of them expect prices to rise further in the...