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RBI Introduces IESH, UCCS, and RCCS Surveys to Support Monetary Policy Decisions.

Banking & Finance | Dated: 03 May 2025

On April 29, 2025, the Reserve Bank of India (RBI) launched three crucial surveys to gather valuable insights for guiding its monetary policy decisions. These surveys aim to assess inflation expectations and consumer confidence among both urban and rural populations in India.

🎯 Key Highlights:

  • - The Inflation Expectations Survey of Households (IESH) is designed to capture households' subjective assessments of price movements and inflation, based on their individual consumption patterns. This survey is conducted across 19 cities in India and provides valuable insights into public expectations of inflation. The findings of this survey are crucial for the Reserve Bank of India (RBI) in setting interest rates and formulating other monetary policies to address inflation effectively.
  • - The Urban Consumer Confidence Survey (UCCS) focuses on collecting qualitative responses from urban households regarding their sentiments on the general economic situation, employment scenario, price levels, and their own income and spending patterns. Conducted across 19 cities in India, this survey offers valuable insights into the confidence levels of urban consumers. These insights can significantly influence consumption patterns, thereby impacting economic growth and monetary policy decisions.
  • - The Rural Consumer Confidence Survey (RCCS) gathers perceptions and one-year-ahead expectations from rural and semi-urban households regarding the general economic situation, employment prospects, price levels, and income and spending. Spanning 31 states and Union Territories (UTs), this survey plays a vital role in understanding rural consumer confidence, which is critical for assessing the overall health of India’s economy, especially considering the significant contribution of the rural economy.

💡 Other Important Facts:

  • (i) These surveys are essential for the RBI in understanding public perceptions and expectations about inflation, economic conditions, and consumer confidence across both urban and rural populations. The data collected helps the RBI make informed decisions regarding interest rates and other monetary policy measures. Such surveys are crucial for adjusting policies that aim to control inflation and promote sustainable economic growth.
  • (ii) In April 2025, as part of the RBI's 1st Bi-monthly monetary policy for Financial Year 2025-26 (FY26), the central bank decided to reduce the repo rate by 25 basis points to 6.00%.
  • (iii) This decision was influenced by the findings from various surveys, including the IESH, UCCS, and RCCS, which provided insights into inflation expectations and consumer confidence, helping guide the RBI’s approach to monetary policy for the upcoming fiscal year.

📚 Test Your Knowledge:

Recently, which organization launched the IESH, UCCS, and RCCS surveys to gather inputs for monetary policy decisions?

Correct Answer: Reserve Bank of India

🚀 Quick Recap:

About Reserve Bank of India (RBI)

  • Governor : Sanjay Malhotra
  • Deputy Governors : M. Rajeshwar Rao, Swaminathan Janakiraman, T. Rabi Sankar, and Poonam Gupta