"Inflation targeting is fine for countries like the US and the UK. But we (India) are dependent on rain, import of oil from Gulf countries. In India, there is no point in setting inflation target," Jalan said at a function to release a book written by former RBI Governor Y V Reddy.
Repeating much of a similar talk he gave in May, Evans said that while the Fed had essentially achieved its goal of full employment, it has had a "serious policy outcome miss" on its other goal of 2-percent inflation.
The revised inflation trajectory which is appreciably lower than the earlier assessment made in April 2017 coupled with the less hawkish tone of the policy statement seem to suggest a possibility of rate cut in the coming quarters.
Traders now see March 2018 as the earliest meeting at which the U.S. central bank would next lift its target for overnight borrowing costs, giving it about a 52 percent chance, based on fed funds futures traded at CME Group. Before Yellen began speaking, they had seen June 2018 as the earliest meeting for a next rate hike.
A vibrant economy and stable currency will make it hard for foreign investors to ignore the theme.
It expects prices to remain benign in coming months. The industry also urged the government to create a conducive environment for investment, capacity utilisation and augmentation of industrial production on a priority basis.
Wholesale inflation rate, measured by the wholesale price index (WPI), is a marker for price movements in bulk buys for traders and broadly mirrors trends in shop-end prices.
In an interview to CNBC-TV18, Sameer Goel, Head of Asia Macro Strategy of Deutsche Bank spoke about how he would play the Indian bond markets.
India’s retail inflation rate fell to 2.18 percent in May from April’s 2.99 percent.
The consumer price index likely rose 2.60 percent in May from a year earlier, dipping from 2.99 percent in April, due to a fall in the cost of pulses, cereals and perishable goods, according to the poll of 25 economists.
MPC may ease policy rates by 25bps in one of upcoming policies with some chances of further easing if monsoon performance is satisfactory and international oil prices remain below $55-60
"In this view, not just headline inflation has been running well below the target so far, but even core inflation ...has also declined sharply. In this view, inflation forecast errors by the RBI have been large and systematically one-sided in overstating inflation," he said.
In a terse one-line statement, the Reserve Bank of India (RBI) Governor Urjit Patel today sent out a message that can be seen as underscoring the importance of the central bank’s autonomy.
The RBI today held key interest rates. Here is bankers' response.
The Reserve Bank of India (RBI) kept its key interest rate unchanged at 6.25 percent on Wednesday, as widely expected, while lowering projections for inflation and striking a somewhat less hawkish tone in a policy statement.
The abrupt and significant retreat of inflation in April from the firming trajectory that was developing in February and March has raised several issues that have to be factored into the inflation projections, it said.
India Inc is also pitching for a rate cut to boost GDP growth that fell to 7.1 per cent in 2016-17 from 8 per cent in the previous fiscal.
A Reuters poll showed 56 of 60 analysts expected the RBI's monetary policy committee to keep its repo rate unchanged at a 6-1/2 year low of 6.25 percent for a fourth meeting in a row. They also expected the reverse repo rate to be left at 6.00 percent.
Valued at around 13 trillion rupee ($201.68 billion), Birla's "dynamic debt" fund now holds 40 percent of its portfolio in government bonds maturing in 2045, up from 35.9 percent in February, according to its website.
On the eve of every monetary policy CNBC-TV18's Citizens' Monetary Policy Committee meets to shadow the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC).
Inflation in the 19 countries sharing the euro slipped to 1.4 percent, its lowest level since December, from 1.9 percent year-on-year in April, statistics agency Eurostat said on Wednesday.
Also, with the new IIP and WPI series, FY17 GDP growth is expected to be revised from 7.1 percent to 7.6 percent along with upward revision for past three quarters. The announcement of GDP will be on May 31
"Several inflation risks highlighted by the MPC (monetary policy committee) in April have subsequently abated, with the improved outlook for the monsoon, rate structure of the goods and services tax (GST) and easing of commodity prices," Icra MD and group CEO Naresh Takkar said.
US Treasury yields are likely to rise primarily due to an increase in crude prices and expectations of higher inflation, dealers said.
According to Japanese financial services major Nomura, the RBI is looking through the current low inflation prints and may keep policy rates unchanged in 2017.