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
New Delhi: The growing threat of stagflation for the Indian economy and persistence of retail inflation above 6 per cent may lead to rise in interest rates, a domestic ratings agency said on Wednesday. The uncertain outlook on inflation in the short term has already led the Monetary Policy Committee (MPC) to hold the interest … Read more
Over the next three days, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) will meet for what would ordinarily have been the last meeting of the present MPC. Except that there’s nothing remotely ordinary about the present. So, even though the term of the three external members ends in September 2020 and, under … Read more
Former RBI Deputy Governor Viral Acharya on Saturday said inflation is higher than expected and the rate-setting panel should “respect” its core mandate of controlling price rise at the next week’s policy review meet. The comments come even as there is an increased clamour for further rate cuts to aid the economic recovery, even as … Read more
New Delhi: Former RBI Governor D Subbarao on Friday said India is not close to the situation where the central bank has to go for debt monetisation amid rising government spending and falling revenue collection due to the COVID-19 crisis. The case for direct financing is made on the argument that government borrowing this year … Read more