By Jaiveer Shekhawat India’s monetary policy makers need to support economic growth even at the cost of their inflation-fighting credentials, as tackling the pandemic situation requires extraordinary measures, a former central bank governor said. The federal government’s large borrowing plan and the Reserve Bank of India’s willingness to support it are bound to fan inflation, … Read more
With India’s story remaining “very strong”, the economy will register a double-digit growth in the current fiscal and the disinvestment climate also looks better, said Niti Aayog Vice Chairman Rajiv Kumar. He also asserted that the country is prepared in a far better manner in case there is a COVID wave as states have also … Read more
The central bank’s Monetary Policy Committee (MPC) is unanimous in its belief that India’s fledgling economic recovery must be supported by an accommodative stance as price pressures, reflected in the latest consumer and producer inflation prints, would ease when temporary supply bottlenecks are removed. Both monetary and fiscal support, the MPC believes, are needed to … Read more
The Reserve Bank on Wednesday announced the launch of the latest round of households’ surveys to capture inflation expectations and consumer confidence, which provides useful inputs for its monetary policy. The central bank has been regularly conducting these surveys. Announcing the launch of the May 2021 round of Inflation Expectations Survey of Households (IESH), the … Read more
MUMBAI: In a remarkable instance of candidness, Prof Jayanth Verma admitted at the April rate-setting meeting of RBI’s Monetary Policy Committee that the time-based forward guidance given by the MPC in October failed to flatten the government bond yield curve in the country. “From my perspective, the principal motivation for the forward guidance was to … Read more
MUMBAI: In a reflection of the uncertainty that surrounds policy making these days, economists now believe that the best course of action for the Reserve Bank of India’s rate-setting panel on Wednesday will be to reiterate its commitment to keeping monetary policy accommodative in the wake of a raging second wave of Covid-19 infections in … Read more
The Reserve Bank has said the economy may return to positive growth earlier during the October-December quarter itself, ahead by a quarter of the forecast provided in the October monetary policy resolution as the September growth momentum has sustained in October as well. But it also warns the sustained inflation, risk of the second wave … Read more
BENGALURU- Retail inflation in India likely rose further above the central bank’s medium-term target last month as food prices climbed due to lingering supply disruptions, a Reuters poll found, reducing the chances of another interest rate cut. Persistent high prices have hurt the recession-stricken economy, which contracted a record 23.9% in April-June despite the Reserve … Read more
The government has appointed economists Shashank Bhide, Ashima Goyal and Jayanth R Varma as independent members to the Monetary Policy Committee, a senior government official told ET. Shashank Bhide is currently a senior advisor at the New Delhi-based think tank National Council for Applied Economic Research, while Goyal is a professor at the Indira Gandhi … Read more
Synopsis The presence of myriad supply constraints, both temporary and permanent, often means that there are periodic spurts in some prices that pushes up headline inflation. These supply problems could show up in items as diverse as onions and healthcare. Flexibility must remain the cornerstone of the new framework. By Abheek BaruaReserve Bank of India … Read more