Speaking at a panel at the ECB Forum in Sintra, Portugal, alongside U.S. Federal Reserve Chairman Jerome Powell and Bank of England Governor Andrew Bailey, Lagarde added that central banks need to adjust to significantly higher price growth expectations.
Late last month, the government announced a series of changes to the tax structure levied on essential commodities and trimmed fuel tax to cushion consumers from rising prices and fight high inflation.
Oil prices jumped in early trade after Saudi Arabia raised prices sharply for its crude sales in July, an indicator of how tight supply is even after OPEC+ agreed to accelerate its output increases over the next two months.
Until now. Stagflationary trends in the housing market combined with the energy shock stemming from war in Ukraine has created a new kind of K-shaped economy.
We know that high inflation exacts a toll, particularly for those less able to meet the higher costs of essentials like food, housing, and transportation, Powell said in prepared testimony that was made public Monday.
"The economy no longer needs increasing amounts of policy support," Fed Chair Jerome Powell said in a news conference in which he contrasted the near-depression conditions at the onset of the coronavirus pandemic in 2020 with today’s environment of rising prices and wages and rapid improvement in the job market.
Technology stocks were among the biggest losers, mirroring a sell-off in China, where talk of tighter regulation sent technology shares skidding.
Since demonetisation, Jan Dhan accounts witnessed a steep growth and to date more than 30 crore accounts have been opened.
Monsoon will have some bearing on the policy outcome in next two policy review
While food inflation during the month hit its lowest level since January 2012, fuel inflation has been lowest since October 2009.
A CNBC-TV18 poll had estimated WPI to come in at 3.1 percent on a lower primary and fuel inflation.
C Rangarajan expected the manufacturing growth rate to be positive at a slightly higher level in order to achieve the 4.9 percent growth rate target for the whole year.
Market expert Sandip Sabharwal expects market to stabilise and see some upside going forward as it heads toward year-end. He also adds that India must have a weak currency as it helps in boosting growth of several sectors including textiles, IT, pharma.
Stability in the global markets, steady liquidity infusion and easing inflation in the domestic arena consolidated gains for the Indian equity benchmarks throughout the week. While the Nifty touched the psychological support of 5400, the Sensex too extended gains.
The RBI will announce the mid-quarterly review of its monetary policy on Thursday. CNBC-TV18 poll of bankers and economists shows that 70% of the respondents expect a no-action credit policy.
With inflation in February up at 6.95% compared to 6.55% in January, experts feel that it is not the right time for the Reserve Bank of India to cut rate.