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RBI has projected a direct impact of the latest pay commission recommendations

RBI has projected a direct impact of the latest pay commission recommendations

The implementation of the Seventh Central Pay Commission (CPC) awards can have a significant bearing on the inflation trajectory through both direct and indirect channels, with the housing and transportation sectors projected to see the biggest impact of the potential increase in the spending capacity of government employees.

The Reserve Bank of India has projected a direct impact of the latest pay commission recommendations on headline inflation to be around 150 basis points, while the indirect effects are estimated to be around 40 basis points. While the impact of the pay awards is likely to be seen over a period of two years, as was the experience the last time around, compared to the Sixth CPC awards, though, the central bank forecasts the increase in the housing index to be “more quick and continuous” and the indirect effects to be “smaller”.

Read more at: Indian Express

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  3. 7th Pay Commission: Salary hike unlikely to destabilise prices, says Economic Survey
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  5. 7th Pay Commission: Government expected to take a decision by end of this week
  6. Actual Impact of 7th Pay Commission on Government Finances
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  8. 7th CPC recommendations will have no impact on the fiscal deficit in the current fiscal year
  9. 7th Pay Commission Latest NEWS – Empowered Committee Meeting may be held Today

April 11, 2016 Tagged With: 7th Central Pay Commission, 7th CPC News, 7th Pay Commission News Filed Under: 7th Central Pay Commission, 7th CPC News, 7th CPC Pay Scale Calculator

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