BUSINESS
Q3 FY24 GDP: Robust economic growth is poised to boost investor confidence
The revival of growth in the manufacturing sector during the second and third quarters of FY24 is truly encouraging, as the sector had stayed in a low growth trap for almost seven-eight quarters before Q2, FY24.
BUSINESS
Inflation posing the 'last mile' challenge
The Monetary Policy Committee (MPC) noted that domestic economic activity is holding up well while large and repetitive food price shocks are interrupting the pace of disinflation. Overall, India appears well placed in terms of macrofinancial stability
BUSINESS
A dream budget for economists, thanks to its fiscal discipline
The nation’s smarter recovery from the pandemic but also by the improved sense of ‘political stability' has paved the way for a relatively aggressive fiscal consolidation. Very rarely one has seen an interim budget devoid of populist measures in an election year
BUSINESS
MPC Policy: RBI presents an optimistic picture on growth
The RBI has given a strongly positive signal on growth, which augurs well for attracting foreign investments. However, strong growth coupled with growing upside bias in food inflation, will keep the MPC on its toes until it achieves the inflation target of 4 percent on a durable basis
BUSINESS
MPC meeting: Policy is reflective of growing inflationary risks
While the MPC has explicitly recognised the risks to growth and inflation originating from this year’s extremely uneven monsoon, global economic slowdown, elevated energy prices, etc., it has not revised at all its annual projections of GDP growth and the headline CPI inflation for India for the year FY24. This is puzzling
BUSINESS
RBI Monetary Policy: A calibrated approach to normalisation
By keeping everything on hold at the June meeting, the RBI has kept all its options open to deal with the upcoming challenges
BUSINESS
MPC: Hawkishness not done yet
The cost of borrowings for companies will go up further, as there is no clear indication as to when the interest rate cycle would peak for India. What we needed at this juncture was clearer forward guidance from the MPC
BUSINESS
Budget 2023: Growth through macro stabilisation
The underlying macroeconomic framework as well as the revenue growth assumptions on which this Budget is based are quite realistic
BUSINESS
MPC | Immediate pausing is off the table
The policy rate hike of 35 bps augurs well for the Indian Rupee. The forex market participants have interpreted the policy as slightly hawkish, and there was some dollar selling by the exporters after the announcement
BUSINESS
RBI presents an optimal monetary policy
There was a strongly-felt need for India to carve its own monetary policy path that would help it manage the inflation and external sector stabilisation without stalling the process of economic recovery
BUSINESS
Monetary Policy | Is 50 the new 25?
Going ahead, the monetary policy moves of the emerging market central banks (including the RBI) will be directly and majorly influenced by the actions of big global central banks, and their broader impact on global economic conditions
BUSINESS
Monetary Policy | RBI moves in tandem with global central banks
By frontloading the rate hikes and staying focused on withdrawal of accommodation, the RBI is not just controlling inflation but also promoting stable macro-financial conditions
BUSINESS
MPC | RBI chooses gradualism over big bang action
The RBI’s Monetary Policy Committee has chosen ‘gradualism’ over any ‘big bang’ action to effect the necessary course correction
BUSINESS
Monetary Policy | RBI continues its flexible approach
Between a fixed rate policy signal (or a reverse repo rate hike) and variable reverse repos, the MPC has opted for the latter to retain its flexibility to tweak short-term rates
BUSINESS
Budget 2022 | Government strikes a fine balance between growth and fiscal consolidation
People were expecting more direct cash enhancement measures for the agriculture and rural belts, as growing joblessness and weak demand in rural belts is acting as a major drag on India’s economic recovery in the current phase
BUSINESS
MPC meet | More on caution, less on activism
Monetary policy decision was primarily influenced by the uncertainty created by the emergence of the COVID-19 variant omicron and lingering imbalances in the economic recovery
BUSINESS
Monetary Policy | RBI chooses a gradual, non-disruptive approach
Factors such as spikes in crude oil price, US treasury yields, actions of major central banks may impact Indian bond yields temporarily, but they will not rise sustainably as long as the RBI remains on a resolute pause
BUSINESS
Q1 GDP signals weaker sequential growth momentum
The latest quarterly GDP statistics vindicates the Monetary Policy Committee stance on August 6 to stay accommodative until growth impulses are nurtured to ensure a durable economic recovery
BUSINESS
30 years later, the gaps in India’s financial sector reforms are still glaring
Strengthening financial regulators by granting them more autonomy should be part of the priority areas of the next phase of financial sector reforms
BUSINESS
Monetary policy committee flags the risks to growth
The intense nature of the COVID-19 second wave has prompted the RBI to increase its dovish hold and to do ‘whatever it takes’ to support economic recovery
BUSINESS
Monetary Policy | A swift response to the COVID-19 second wave
To balance the conflicting trajectories of inflation (with an upside bias) and economic growth (with a downside bias), the RBI has relied on smart management of liquidity to keep the costs of borrowings low for both the government and the private sector
BUSINESS
Budget 2021 | ‘Fiscal stimulus’ should be clearly linked to the growth trajectory
While the current deviation from the rule-based fiscal framework was necessitated by the severity of the economic shock, it is necessary to monitor and manage it in a transparent fashion.
BUSINESS
A growth supportive monetary policy
There is no doubt that the RBI has done the heavy lifting to support growth in these exceptional circumstances. However, excess liquidity creation amid growing concerns about inflation and fiscal slippage will continue to interfere with market dynamics
BUSINESS
A confidence boosting monetary policy
The first policy of the new MPC members has appropriately focussed on growth revival with the support of unconventional monetary steps and bold regulatory measures from the RBI
