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
Aa Dekhe Zara… kisme kithna hai dum – said the virus to the vaccine! This is the backdrop against which RBI’s Monetary Policy Committee (MPC) members are set to meet to decide the way forward for money policy in the economy. As the pandemic completes its maiden anniversary, apprehensions with respect to the second wave … Read more
Mumbai: Rising COVID-19 cases may come in handy for the Reserve Bank of India to reiterate its accommodative stance to push growth despite rising inflation and bond yields, when the central bank’s MPC meets to decide on rates next week. A prospect of a lockdown adds to the growth concerns even as there risks of … Read more
MUMBAI: Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said demand in the economy has moved from being of pent-up nature to actual one, and the momentum is likely to sustain. “Demand has now moved beyond pent-up demand to actual demand coming up. I think the demand curve is expected to be now … Read more
The writing has been on the wall for some time. India’s monetary policy framework is dead. Not legally, but practically, as extreme circumstances have forced relooks at key assumptions and objectives behind the vaunted inflation targeting framework. Even before Covid-19, the inflation targeting framework seemed to be biased towards keeping rates high. While nominal growth … Read more
The Reserve Bank is likely to keep the benchmark interest rate unchanged at its bi-monthly monetary policy review outcome to be announced on Friday, but may revise growth estimates in view of the September quarter GDP turning out to be better than RBI‘s earlier projections. According to experts, the stubborn retail inflation, which has remained … 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
By Saugata BhattacharyaConcerns on persisting, higher-than-expected consumer price index (CPI) inflation will prompt some questions on further easing at the next Monetary Policy Committee’s (MPC) review meeting. But the main concern will remain growth contraction and demand destruction.The balance of probability is that MPC will pause on a further cut (after a sequence of cuts … Read more