The RBI said it aims at capturing subjective assessments on price movements and inflation of approximately 6,000 households, based on their individual consumption. On Wednesday, the Reserve Bank announced the latest rounds of survey of households’ to be conducted to capture inflation expectations and consumer confidence, which provides useful inputs for its monetary policy.
Monetary policy is the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.
The survey was named Inflation expectations survey of households’ (IESH), which shall be launched in May, 2021. This round of survey aims at capturing around 6,000 households and across 18 cities. The survey will take the qualitative and quantitative responses from each household for three months ahead and one year ahead as well.
The cities include major big cities like Bengaluru, Delhi, Ahmedabad, Bhopal, Chandigarh, etc. The Consumer Confidence Survey (CCS) seeks qualitative responses from households, regarding their sentiments on general economic situation, employment scenario, price level, households’ income and spending. Instead of regular personal conversation, the agency appointed will use telephone as a means of communication.
The next meeting for the same is to be held on 2nd – 4th of June, 2021 by the Monetary Policy Committee.