RBI: RBI launches three major surveys, how will policies affecting the common man's pocket be determined?
In Brief
RBI launches three major surveys
Survey of household inflation expectations
Urban consumer confidence survey
The Reserve Bank of India (RBI) has launched three major surveys on Friday (31st) to understand the state of the country's economy. Through these surveys, the RBI will attempt to assess people's expectations regarding inflation, employment, and income in the future. The information collected from these surveys can directly impact the bank's monetary policy, i.e., interest rates and economic decisions. These surveys will be conducted until November 2025.
Household Inflation Expectations Survey
The first survey is the Inflation Expectations Survey (IESH). The purpose of this survey is to understand what the general public thinks about inflation. It will ask whether people expect the prices of pulses, oil, gas, or clothes to rise or fall.
This survey will be conducted in 19 major cities, and citizens will be asked questions about their personal expenses and changes in prices. This will help the RBI understand public concerns about future inflation. The information gathered will play an important role in determining the central bank's policy.
Urban Consumer Confidence Survey
The second survey will be the Urban Consumer Confidence Survey (UCCS). It measures the economic sentiments of people living in the cities of the country. In this survey, families will be asked about their perceptions of the current economy, job opportunities, price levels, and their income and expenses. Additionally, during the survey, citizens will be asked if their jobs are secure, whether they will be able to spend more in the future, or if their savings will increase. The information revealed from this survey is important for the RBI as it influences consumer spending and market movements.
Rural Consumer Confidence Survey
The third survey is the Rural Consumer Confidence Survey (RCCS) which focuses on rural and semi-urban areas. This survey will be conducted in 31 states and union territories. During this survey, rural households will be asked about their current financial situation, employment opportunities, prices of goods, income, and what changes they expect in the coming year.
The Role of Three Major Surveys in Policy Making
The RBI conducts these surveys annually to understand public perception about the economy. The data collected from these surveys is sent to the Monetary Policy Committee (MPC), which is crucial for making decisions regarding interest rates, inflation control, and credit policy. The results of these surveys are expected before the MPC meeting starting on December 3.
The second survey will be the Urban Consumer Confidence Survey (UCCS). It measures the economic sentiments of people living in the cities of the country. In this survey, families will be asked about their perceptions of the current economy, employment opportunities, price levels, and their income and expenditure. Additionally, during the survey, citizens will be asked if their jobs are secure, whether they will be able to spend more in the future, or if their savings will increase. The information revealed from this survey is important for the RBI as it influences consumer spending and market movements.
Rural Consumer Confidence Survey
The third survey is the Rural Consumer Confidence Survey (RCCS) which focuses on rural and semi-urban areas. This survey will be conducted in 31 states and union territories. During this survey, rural households will be asked about their current economic situation, employment opportunities, prices of goods, income, and what changes they expect in the coming year.
The Role of Three Major Surveys in Policy Making
The RBI conducts these surveys annually to understand public perception about the economy. The data collected from these surveys is sent to the Monetary Policy Committee (MPC), which is crucial for making decisions regarding interest rates, inflation control, and credit policy. The results of these surveys are expected before the MPC meeting starting on December 3.