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RBI Experiments With New Model To Detect Economic Twists And Turns

The RBI adds Sensex, nominal effective exchange rate, bank credit to its GDP nowcasting model



 Scientist mixes chemicals inside the new lab at the GlaxoSmithKline Plc facility in Collegeville, Pennsylvania, U.S. (Photographer: Eric Thayer/Bloomberg)
Scientist mixes chemicals inside the new lab at the GlaxoSmithKline Plc facility in Collegeville, Pennsylvania, U.S. (Photographer: Eric Thayer/Bloomberg)
The Indian central bank, which failed to foresee the sharp fall in the country’s economic growth in 2019-20, is experimenting with a new model to strengthen its ability to catch twists and turns in the economy better.In its new model, the Reserve Bank of India adds financial indicators including the nominal effective exchange rate and the Sensex, along with non-food bank credit, to the list of data points already tracked.The extracte...
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