There is no consensus on how weak growth is, but as long as inflation remains low, monetary policy will be called upon to do the heavy lifting
Banking regulator asks exchanges to act as facilitators and bid aggregators
The cut in policy rates and a dovish commentary, though eminently welcome, is not a panacea.
With inflation likely to undershoot the 4 percent target for the third consecutive year in FY20, monetary policy has unambiguous room to start reinvigorating growth.
PMI readings were higher in January and February this year
It is important to note that the core inflation is still above the 5 percent mark and a significant demand boost would have pushed it up further.
It would be best to book some profits in banking stocks ahead of the monetary policy announcement.
Intervention in the currency market will help attain the twin objectives of building reserves and keeping the rupee competitive for Indian exporters.
GDP growth revisions, especially those reversing the direction, seriously undermine the appropriateness of Indian macroeconomic policies
The policy is broadly neutral for banks and puts stronger NBFCs in a vantage position
Winston Churchill was supposed to have said, ‘‘You can always count on Americans to do the right thing -- after they’ve tried everything else.’
Sakshi Batra does a 3 point analysis on whether the government will be successful in getting access to RBI’s capital and how rating agencies will react to such a myopic approach.
the decision to maintain rates is consistent with what the MPC has been doing so far, since moving to the flexible inflation-targeting framework.
MPC kept repo rates unchanged at 6.5 percent, maintaining the stance at calibrated tightening
Yi's comments come amid widespread expectations that the central bank will ease policy further in coming months to support China's economic growth, which has cooled to the weakest pace since the global financial crisis.
The sovereign has made its point but the regulator has not been swayed from its dharma of maintaining the soundness of the system. That's not a bad bottomline.
The fact that economists are increasingly waking up to one of humanity’s biggest impending problems can be gauged by the Economics Nobel awarded to William Nordhaus and the resurgence of research in this area.
"India, and Indonesia are likely to grow near trend despite external and domestic challenges... We expect larger emerging markets, like India, Indonesia, Brazil, Turkey and Argentina, to continue monetary tightening in 2019," Moody's said in a report.
Central banks in mature democracies need to be nuanced in their approach to their autonomy
On October 5, the six-member MPC decided to keep key policy interest rate or repo rate unchanged at 6.50 percent
It is often seen that banks are slower in passing on the repo rate cut to lending rates but are quick to pass on the hikes
Banks not passing on rate cuts points to a lack of intensity in price competition and calls for increasing the number of lenders
The market would have preferred a more orthodox approach where the RBI would have hiked rates to support the rupee
The extent of RBI’s heavy lifting depends on fiscal slippage risks. Political priorities are likely to rise in this pre-election year, however, fiscal orthodoxy should not be sidestepped
Tighter liquidity conditions, if persistent, could push the call money rate above the policy rate on a consistent basis, thereby inducing more than required monetary tightening and vice versa