By Our Correspondent
BHUBANESWAR:Odisha BJP has welcomed the monetary policy steps taken by the Reserve Bank of India on October 7 to protect the income and savings of the common man from rising inflation. The decision to increase the repo rate by 0.25 percentage points to 5.50 percent and adopt a calibrated approach to tightening monetary policy is a preventive and proactive decision. Taking steps before inflation becomes uncontrollable is a sign of responsible economic management, said State Spokesperson Shri Satyabrat Panda in a press release.
Shri Panda said that the Reserve Bank’s own inflation forecast for August was 4.82 per cent, while it could touch 5.2 per cent by the end of the year. After such an estimate, the Reserve Bank’s inaction was not justified at all. Interest rates alone will not produce food or increase fuel supplies. But it can reduce the risk of inflationary pressures becoming widespread and persistent. The high growth rate, a strong labour market, good health of the banking system, improving fixed capital formation and investment in infrastructure have created a conducive environment for the Reserve Bank to take such timely policy measures against possible inflationary pressures.
Rising poverty silently reduces the income and savings of poor and middle-class families. Income remains the same, but that money buys less. The purchasing power of the saved money is also affected. Therefore, price control is a question of economic security of the people. Today’s caution by the Reserve Bank can protect the common consumer of the country from the heavy burden of the coming days. The main sign of this decision is that along with raising interest rates, the Reserve Bank has increased the growth forecast for 2026-27 from 6.7 percent to 7.1 percent. The forecast is not a surefire outcome; however, it shows confidence in India’s growth potential. Shri Panda said that India is fighting inflation not out of weakness, but out of strong economic fundamentals.
In April-June 2026, real GDP grew by 7.8 percent, fixed capital formation by 11.9 percent and household real consumer spending by 7.1 percent. Investment in factories, machinery and infrastructure is fuelling future production. Domestic demand is also supporting growth. This strength has created a conducive environment for proactive measures against poverty. According to the PLFS of August 2026, the unemployment rate for people aged 15 and above is 5 percent, the working population ratio is 52.8 percent and the labour force participation rate is 55.6 percent. Despite challenges related to wages and job quality, these data indicate overall stability in the labour market, said Shri Panda.
The banking system is another crucial strength. The gross non-performing loan ratio of scheduled commercial banks has come down from 11.18 per cent in March 2018 to 2.05 per cent in September 2025. The net non-performing loan has come down from 5.94 per cent to 0.48 per cent. The capital adequacy ratio has increased from 13.85 per cent to 17.24 per cent. It measures the safety of a bank’s own capital to withstand potential losses. The Modi government’s banking reforms, infrastructure building and investment have strengthened this capacity. With stalled projects and the burden of non-performing loans, cheap credit alone cannot bring sustainable growth. Healthy banks and productive investment are the strong foundation of development, said Shri Panda.
Emphasizing the impact of rising debt costs, Shri Panda said that there is a need for measured steps, supply chain reforms and efficient planning implementation. Stable interest rates and reliable credit are both essential for Odisha’s families, farmers and small enterprises. And the state government is vigilant about this. Supporting the independent, data-driven decision of the Reserve Bank, the party said that only by curbing poverty can the fruits of development be secured for the common man, Shri Panda said.
