Hindi English Translation || Editorial || Timely inaction: On RBI’s decision to hold repo rate

Timely inaction: On RBI’s decision to hold repo rate

Slowing growth and rising inflation (महंगाई, मुद्रास्फीति) necessitated (आवश्यक बनाना, अनिवार्य करना) unchanged rates

The RBI Monetary Policy Committee’s (MPC) (मौद्रिक नीति समिति) decision to keep interest rates unchanged — a “wait and watch” approach, in the Governor’s words — is a sensible (समझदारीपूर्ण, तर्कसंगत) move (कदम, कार्रवाई). At a time when hasty (जल्दबाज़, उतावला) words and deeds have roiled (अशांत करना, उथल-पुथल मचाना) world markets, economies, and even households (परिवार, गृहस्थी), a measured policy response was the need of the hour (समय की आवश्यकता). The challenge before the MPC is that the main tool (साधन, उपकरण) it has — the repo rate — impacts growth and inflation in opposite ways. That is, if it had raised rates to try to contain (नियंत्रित करना, काबू में रखना) an anticipated (अपेक्षित, अनुमानित) surge (sudden increase, rise, growth, upsurge) in inflation, this would have hurt (to cause negative effects to an entity or process; damage, harm, impair, adversely affect) growth. On the other hand (used to introduce a contrasting point of view, fact, or situation; conversely, alternatively, then again, in contrast), if it lowered rates to boost growth, this would have pushed inflation up. The war in West Asia has resulted in both of these undesirable outcomes: supply chain (the sequence of processes involved in the production and distribution of a commodity; logistics network, distribution channel, supply network) constraints (restriction, limitation, check, curb) have pushed up costs while also dragging down growth. A rate change at this juncture (a particular point in events or time; point, moment, stage, time) could have made matters significantly worse and further dampened (to make a feeling or situation less strong or intense; lessen, decrease, diminish, reduce) the mood (the general feeling or atmosphere in a particular place or among a group of people; atmosphere, feeling, spirit, sentiment) in the economy. In his speech, RBI Governor Sanjay Malhotra predicted that India’s GDP (Gross Domestic Product; the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period) would grow 6.9% in 2026-27. Given (taking into account; considering, bearing in mind, keeping in mind) that this is still the first month of the financial year, the forecast (a prediction or estimate of future events, especially regarding a financial trend; prediction, projection, estimation, calculation) is likely (probably, possibly, doubtlessly, presumably) to change considerably (significantly, substantially, materially, greatly) over the subsequent (following, succeeding, ensuing, later) MPC announcements. For example, the MPC in April last year had predicted that growth in 2025-26 would be 6.5%. In contrast (conversely, on the contrary, by comparison, as opposed to), the government’s latest estimate for the year is 7.6%. Considerable (significant, substantial, sizable, appreciable) uncertainty (unpredictability, unreliability, doubt, hesitation) continues to persist (to continue to exist or occur over a prolonged period; continue, remain, linger, endure) in West Asia, with shipping companies still hesitant (reluctant, unsure, cautious, unconfident) to brave (endure, face, withstand, confront) the Strait of Hormuz (a critical, narrow maritime chokepoint separating the Arabian Peninsula and Iran, and connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea, serving as the primary gateway for Gulf energy exports to global markets).

All of this, coupled with the fuel constraints, will continue to hamper (hinder, obstruct, impede, restrict) growth in 2026-27. The RBI lowered its growth forecast for the first quarter (a period of three months, considered as a quarter of a year, particularly in financial or economic contexts; three-month period) by just 0.1 percentage points (the difference between two percentages; a unit of measure used to express the arithmetic difference of two percentages), which might end up (to finally be in a particular place or situation; find oneself, finish, turn out to be) being an over-optimistic (excessively hopeful and confident about the future; too positive, excessively sanguine, overly hopeful, unrealistic) reading of the situation. The World Bank’s (an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects and economic development) India Development Update report, released on Thursday, predicts a slowdown (a decline in economic activity; recession, decline, slump, downturn) in industrial growth in India over the course of (during a specific period of time; during, throughout, in the duration of) this financial year. Consumer and government demand (the total amount of goods and services that the government purchases; public sector spending, state expenditure, public procurement, government spending), too, is expected to slow as both groups try to tighten their belts. Inflation, on the other hand, is expected to accelerate (speed up, quicken, hasten, expedite) considerably to 4.6%, according to the RBI. Yet, the MPC was correct not to raise rates since most of the inflationary pressure is due to supply issues rather than (instead of, as opposed to, in place of) demand conditions. Raising rates would not only have slowed growth further, but even the primary objective (goal, aim, target, purpose) of containing inflation would not have been met. A lot of factors need to play out (to develop or unfold in a particular way; unfold, happen, occur, take place) before monetary policy (the macroeconomic policy laid down by the central bank which involves management of money supply and interest rates; economic policy, financial strategy, central bank policy) can act — the war, the U.S. tariff-related (relating to taxes or duties to be paid on a particular class of imports or exports; duty-related, tax-related) investigations, greater clarity on a potential (possible, likely, probable, prospective) El Nino (a climate pattern that describes the unusual warming of surface waters in the eastern tropical Pacific Ocean, which has significant impacts on global weather and climate, often causing disrupted rainfall or drought in India) impact on the monsoon this year, to name a few. Until then (up to that point in time; up to that time, till then, before that time), inaction is the best course of action (a procedure adopted to deal with a situation; plan of action, strategy, method, procedure).

Courtesy: The Hindu

Important Word List With Meaning

1.timely (adjective)

Hindi Meaning - समय पर
English Meaning - opportune, prompt, well-timed, appropriate.

2.inaction (noun)

Hindi Meaning - निष्क्रियता
English Meaning - inactivity, non-intervention, passivity, inertia.

3.hold (verb)

Hindi Meaning - बनाए रखना, कायम रखना
English Meaning - to keep or maintain something at its current level or state; maintain, keep, sustain, retain.

4.tool (noun)

Hindi Meaning - साधन, उपकरण
English Meaning - instrument, mechanism, means, device.

5.inflation (noun)

Hindi Meaning - महंगाई, मुद्रास्फीति
English Meaning - a general increase in prices and fall in the purchasing power of money; price rise, rising prices, cost escalation.

6.necessitate (verb)

Hindi Meaning - आवश्यक बनाना, अनिवार्य करना
English Meaning - to make something necessary as a result or consequence; require, demand, entail, warrant.

7.Monetary Policy Committee (MPC) (noun)

Hindi Meaning - मौद्रिक नीति समिति
English Meaning - a six-member statutory committee constituted by the Central Government under the Reserve Bank of India Act, 1934, which is entrusted with the task of fixing the benchmark policy interest rate (repo rate) required to contain inflation within the specified target level.

8.anticipated (adjective)

Hindi Meaning - अपेक्षित, अनुमानित
English Meaning - expected or predicted to happen; expected, predicted, foreseen, awaited.

9.sensible (adjective)

Hindi Meaning - समझदारीपूर्ण, तर्कसंगत
English Meaning - reasonable, rational, logical, practical.

10.move (noun)

Hindi Meaning - कदम, कार्रवाई
English Meaning - step, action, measure, initiative.

11.hasty (adjective)

Hindi Meaning - जल्दबाज़, उतावला
English Meaning - hurried, rushed, impulsive, precipitous.

12.roil (verb)

Hindi Meaning - अशांत करना, उथल-पुथल मचाना
English Meaning - to make a situation or people disturbed or unsettled; disturb, agitate, unsettle, stir up.

13.household (noun)

Hindi Meaning - परिवार, गृहस्थी
English Meaning - a house and its occupants regarded as a unit; family, family unit, house.

14.the need of the hour (phrase)

Hindi Meaning - समय की आवश्यकता
English Meaning - the most essential or urgent requirement at a particular moment; crucial requirement, absolute necessity, primary demand, urgent need.

15.contain (verb)

Hindi Meaning - नियंत्रित करना, काबू में रखना
English Meaning - control, curb, restrain, limit.

16.deed (noun)

English Meaning - act, action, feat, undertaking.

17.repo rate (noun)

English Meaning - the rate at which the central bank of a country (such as the Reserve Bank of India) lends money to commercial banks in the event of any shortfall of funds; benchmark interest rate.

18.“wait and watch” approach (noun)

English Meaning - a strategy of deliberately taking no immediate action to observe how a situation develops before making a decision; wait-and-see policy, cautious stance, observant strategy.

19.measured (adjective)

English Meaning - careful and considered, not done with undue haste; calculated, deliberate, thoughtful, careful.

20.surge (noun)

English Meaning - sudden increase, rise, growth, upsurge.

21.hurt (verb)

English Meaning - to cause negative effects to an entity or process; damage, harm, impair, adversely affect.

22.On the other hand (phrase)

English Meaning - used to introduce a contrasting point of view, fact, or situation; conversely, alternatively, then again, in contrast.

23.push up (phrasal verb)

English Meaning - increase, raise, elevate, escalate.

24.result in (phrasal verb)

English Meaning - lead to, cause, bring about, produce.

25.outcome (noun)

English Meaning - consequence, result, conclusion, aftermath.

26.supply chain (noun)

English Meaning - the sequence of processes involved in the production and distribution of a commodity; logistics network, distribution channel, supply network.

27.constraint (noun)

English Meaning - restriction, limitation, check, curb.

28.drag down (phrasal verb)

English Meaning - to cause someone or something to fail or to perform worse; pull down, hold back, impede, negatively affect.

29.juncture (noun)

English Meaning - a particular point in events or time; point, moment, stage, time.

30.make matter worse (phrase)

English Meaning - to exacerbate a bad situation; compound the problem, exacerbate the situation, aggravate, add fuel to the fire.

31.dampen (verb)

English Meaning - to make a feeling or situation less strong or intense; lessen, decrease, diminish, reduce.

32.mood (noun)

English Meaning - the general feeling or atmosphere in a particular place or among a group of people; atmosphere, feeling, spirit, sentiment.

33.GDP (noun)

English Meaning - Gross Domestic Product; the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period.

34.given (preposition)

English Meaning - taking into account; considering, bearing in mind, keeping in mind.

35.forecast (noun)

English Meaning - a prediction or estimate of future events, especially regarding a financial trend; prediction, projection, estimation, calculation.

36.likely (adverb)

English Meaning - probably, possibly, doubtlessly, presumably.

37.considerably (adverb)

English Meaning - significantly, substantially, materially, greatly.

38.over (preposition)

English Meaning - during, throughout, in the course of.

39.subsequent (adjective)

English Meaning - following, succeeding, ensuing, later.

40.predict (verb)

English Meaning - forecast, foretell, foresee, project.

41.In contrast (phrase)

English Meaning - conversely, on the contrary, by comparison, as opposed to.

42.considerable (adjective)

English Meaning - significant, substantial, sizable, appreciable.

43.uncertainty (noun)

English Meaning - unpredictability, unreliability, doubt, hesitation.

44.persist (verb)

English Meaning - to continue to exist or occur over a prolonged period; continue, remain, linger, endure.

45.hesitant (adjective)

English Meaning - reluctant, unsure, cautious, unconfident.

46.brave (verb)

English Meaning - endure, face, withstand, confront.

47.Strait of Hormuz (noun)

English Meaning - a critical, narrow maritime chokepoint separating the Arabian Peninsula and Iran, and connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea, serving as the primary gateway for Gulf energy exports to global markets.

48.couple with (phrasal verb)

English Meaning - combine with, link with, accompany by, pair with.

49.hamper (verb)

English Meaning - hinder, obstruct, impede, restrict.

50.quarter (noun)

English Meaning - a period of three months, considered as a quarter of a year, particularly in financial or economic contexts; three-month period.

51.percentage point (noun)

English Meaning - the difference between two percentages; a unit of measure used to express the arithmetic difference of two percentages.

52.end up (phrasal verb)

English Meaning - to finally be in a particular place or situation; find oneself, finish, turn out to be.

53.over-optimistic (adjective)

English Meaning - excessively hopeful and confident about the future; too positive, excessively sanguine, overly hopeful, unrealistic.

54.reading (noun)

English Meaning - an interpretation or assessment of a situation; interpretation, assessment, understanding, evaluation.

55.World Bank (noun)

English Meaning - an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects and economic development.

56.India Development Update report (noun)

English Meaning - a flagship half-yearly publication produced by the World Bank that summarizes recent macroeconomic developments in India’s economy and places them in a medium-term and global context.

57.slowdown (noun)

English Meaning - a decline in economic activity; recession, decline, slump, downturn.

58.over the course of (phrase)

English Meaning - during a specific period of time; during, throughout, in the duration of.

59.consumer demand (noun)

English Meaning - the amount of goods and services that consumers are willing and able to purchase at a given price; market demand, public consumption.

60.government demand (noun)

English Meaning - the total amount of goods and services that the government purchases; public sector spending, state expenditure, public procurement, government spending.

61.tighten one’s belt (phrase)

English Meaning - to cut one’s expenditure or live more frugally; economize, cut back, save, be frugal.

62.accelerate (verb)

English Meaning - speed up, quicken, hasten, expedite.

63.inflationary pressures (noun)

English Meaning - economic conditions or forces that cause the price of goods and services to increase; price increases, rising costs, inflationary forces.

64.due to (phrase)

English Meaning - because of, owing to, on account of, thanks to.

65.rather than (phrase)

English Meaning - instead of, as opposed to, in place of.

66.objective (noun)

English Meaning - goal, aim, target, purpose.

67.meet (verb)

English Meaning - to fulfil or satisfy a requirement or need; fulfil, satisfy, answer, match.

68.play out (phrasal verb)

English Meaning - to develop or unfold in a particular way; unfold, happen, occur, take place.

69.monetary policy (noun)

English Meaning - the macroeconomic policy laid down by the central bank which involves management of money supply and interest rates; economic policy, financial strategy, central bank policy.

70.tariff-related (adjective)

English Meaning - relating to taxes or duties to be paid on a particular class of imports or exports; duty-related, tax-related.

71.potential (adjective)

English Meaning - possible, likely, probable, prospective.

72.El Nino (noun)

English Meaning - a climate pattern that describes the unusual warming of surface waters in the eastern tropical Pacific Ocean, which has significant impacts on global weather and climate, often causing disrupted rainfall or drought in India.

73.to name a few (phrase)

English Meaning - used to give a few examples out of a larger group; to give a few examples, as an example, among others.

74.until then (phrase)

English Meaning - up to that point in time; up to that time, till then, before that time.

75.course of action (phrase)

English Meaning - a procedure adopted to deal with a situation; plan of action, strategy, method, procedure.