RBI Launches Key Surveys for Monetary Policy

April 30, 2025

The Reserve Bank of India (RBI) has recently initiated three surveys aimed at enhancing its monetary policy framework. These surveys focus on inflation expectations and consumer confidence among urban and rural households. The findings will play important role in guiding the RBI’s decisions in upcoming Monetary Policy Committee meetings.

Inflation Expectations Survey of Households

The Inflation Expectations Survey of Households (IESH) is designed to gather subjective assessments of price movements. Conducted across 19 cities, it captures insights based on individual consumption patterns. This survey enables the RBI to understand public sentiment regarding inflation, which is vital for shaping monetary policy.

Urban Consumer Confidence Survey

The Urban Consumer Confidence Survey (UCCS) aims to assess household sentiments about the economy. It collects qualitative data on perceptions regarding the general economic situation, employment, price levels, and household income and spending. This survey also includes responses from 19 cities, providing a comprehensive look at urban consumer attitudes.

Rural Consumer Confidence Survey

The Rural Consumer Confidence Survey (RCCS) focuses on households in rural and semi-urban areas across 31 states and Union Territories. It gathers current perceptions and expectations for the next year regarding the economic situation, employment, price levels, and personal income. This survey is crucial for understanding the economic outlook from a rural perspective.

Importance of Surveys for Monetary Policy

These surveys are instrumental in informing the RBI’s monetary policy decisions. The results provide valuable vital information about consumer behaviour and expectations, which are essential for predicting inflation trends and economic growth. The RBI conducts these surveys regularly to ensure its policies are aligned with the current economic climate.

Monetary Policy Committee Meetings

The RBI typically holds six bi-monthly monetary policy reviews each financial year. The upcoming Monetary Policy Committee meeting is scheduled for June 4-6, 2025. from the recent surveys will be crucial for this meeting, enabling the committee to make informed decisions based on consumer sentiment and economic conditions.

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