Inflation in India is uncomfortably sticky. As of now it will be a closed call for RBI in its next MPC meet. It will be prudent to do one more rate hike for RBI. India should not prematurely stop rate hike and be surprised later.
The run on the Silicon Valley Bank and Signature Bank in the US has led to increasing calls for the Federal Reserve to halt its interest rate rises. This also complicates policymaking for emerging market rate-setters.
Goyal pointed out that US actions have spillover effects for the rest of the world
Hopes of the Federal Reserve ‘pivot’ have faded on the back of robust economic data. Markets fear the Fed funds rate could rise to over 6 percent.
The Reserve Bank of India's inflation forecast for 2023-24 assumes $95 per barrel as the price of India’s crude oil basket, which many economists think is too high
According to Shashanka Bhide, a fall in core inflation is key to returning headline retail inflation back to the medium-term target of 4 percent
According to Ashima Goyal, growth could be severely hit if continued rate hikes result in a real repo rate that is well above 1 percent
It is strange that the RBI Bulletin’s state of the economy report talks of decoupling when history has proved it to be a chimera and when another article in the same bulletin shows that monetary policy by the US Federal Reserve Bank is proved to have a strong impact on India’s business cycle
The State of the Economy report in the RBI Bulletin says 'we believe that India will decouple from macroeconomic projections of current vintage and also from the rest of the world'
What will be the consequences of Ueda’s policies for the carry trade, which has become a significant source of foreign investments for key segments of the global markets?
India's headline inflation rate jumped by a massive 80 basis points last month — far more than economists had predicted
The latest inflation data comes days after the Reserve Bank of India raised the policy repo rate by 25 basis points to 6.5 percent. For 2023-24, the central bank has forecast an average inflation rate of 5.3 percent.
Several emerging markets were ahead of the curve in raising interest rates after the ultra-accommodative pandemic era. Now they could be the first ones to start cutting them.
The Ministry of Statistics and Programme Implementation will release retail inflation data for January at 5.30 pm on February 13.
On February 8, RBI said it will issue draft rules on levying penal charges on loans.
The RBI is responsible for modulating liquidity in line with the monetary policy stance adopted by the MPC. But what happened on February 8 is a further proof that it is the central bank that is dictating what the stance should be
The RBI increased the benchmark lending rate by 25 basis points; home loan rates are expected to go up further.
The possible reason the RBI’s Monetary Policy Committee has kept the door open for future rate hikes is that while inflation has eased, it is still higher than the RBI’s target. Meanwhile, post the latest hike, the portfolio yields of debt mutual funds will move up marginally.
The central bank's inflation forecast for the next year presents a huge drop from the current year. But a case can be made for it to have been lower, say economists
RBI has raised repo rate by 25 basis points on February 8. This pushed up the short term rates. Here is how investors should realign their debt fund investments.
A record government borrowing programme amid tightening of liquidity conditions has led to talk of the need for the Reserve Bank to buy the bonds through open market operations in 2023-24
RBI Monetary Policy 2023: The central bank hiked repo rate, the rate at which it lends short-term funds to banks, by 25 basis points, citing sticky core inflation. Shaktikanta Das is known to quote prominent personalities or offer a punchline to convey his message on the state of the economy.
The Indian central bank looks at a variety of economic indicators before deciding on interest rates and other monetary policy matters. Moneycontrol takes a look at several key indicators which may influence the Monetary Policy Committee's decision on rates
The objective during 2023 is to tether inflation therein so that it aligns with the target by 2024, the second milestone, the said the article auhtored by a team lead by RBI Deputy Governor Michael Debabrata Patra.
India’s monetary policy makers are expected to wind down hikes after a 25-basis-point move in February, capping the most aggressive tightening cycle since 2011.