The consumer confidence in India has dropped down since 2014, said the Reserve Bank of India (RBI) citing its recent nation-wide survey.
The Reserve Bank calculated pessimism and confidence factors among Indians consumers with 100 as the dividing line.
It said the current situation index fell from 89.4 in September to 85.7 by November 2019.
This drop is majorly attributed to the declining economic situation and increased unemployment in the country.
Moreover, minimized lending by the banking sector over the year has reportedly hit the domestic consumption pattern.
All these together brought the growth to a six-year low at the end of last quarter in September 2019.
The RBI survey was conducted in 13 cities and involved 5,334 households, who were sought opinions on general economic situation (perception and expectation), employment scenario, pricing situation besides spending and income generation.
And, the respondents said the prices have gone up over the last one year and are expected to grow further in the coming year, indicating inflationary pressure in the near future.
After a series of 5 interest rate cuts throughout the year, markets expected another one from RBI this month in view of the economic slowdown.
But to everyone’s surprise, RBI refrained from doing so on December 05, 2019 and keep that unchanged!
RBI said the decision is aimed at meeting its medium-term inflation target of 4%. The Central bank reiterated that it will continue doing so until it’s required to revive growth with maintaining inflation within the target.