Ashima Goyal

Inflation is expected to come down over the year, RBI Monetary Policy Committee (MPC) member Ashima Goyal said on Sunday, asserting that the government's supply-side action coordinated with a flexible inflation-targeting regime has kept the rate of price rise lower than that in other countries. Goyal said that India has successfully dealt with 'pluri-shocks' over the past three years, showing considerable resilience. "Inflation rates are expected to come down over the year. "Government supply-side action coordinated with a flexible inflation targeting regime has kept Indian inflation rates lower than other countries and our own past averages even in this period of major adverse external supply shocks," she told PTI in a telephonic interview. She was asked whether high inflation become the norm in India. "Since nominal policy rates rise with inflation to maintain an expected real positive rate under inflation targeting this prevents demand over-heating and anchors inflation ...

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Continuing to raise nominal repo rates until core inflation falls could imply an overshooting or excess tightening of real rates, says the MPC member in an interview with Business Standard

"You don't need to keep on raising nominal rates as long as inflation does not come down because then you will definitely overshoot in terms of real rates," Goyal said

In a Q&A, she says the majority opinion is that the country has handled the turbulence well and can do so again, though the probability is low in the immediate future

Governor Das said due to persistent core inflation, there is no room for complacency and the battle against inflation is not over

Core inflation is calculated by largely stripping away the volatile components of food and fuel. Goyal was referring to certain products that have linkages with oil prices

RBI Monetary Policy Committee (MPC) member Ashima Goyal on Wednesday said that the efforts of the Reserve Bank to contain price rise by repeatedly increasing interest rates will help in containing inflation, which is likely to fall below 6 per cent next year. Goyal further said that the policy rate hikes have largely reversed pandemic-time cuts but the real rate remains low enough not to hurt the growth recovery. "With a lag of two-three quarters, higher real rates will reduce demand in the economy. "International commodity prices are softening with the global slowdown and supply chain bottlenecks have reduced," she told PTI in a telephonic interview. In order to control rising inflation, the RBI on September 30, raised the short-term lending rate for the third consecutive time by 50 bps to take the repo rate to 5.9 per cent. Since May it has cumulatively increased the key interest rate by 190 basis points. "The Indian government is also taking action to reduce supply-side inflati

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Ashima Goyal was the only dissenting Monetary Policy Committee member who pitched for 35 basis point rate hike while RBI raised rates by 50 points. Business Standard's Bhaskar Dutta caught up with her

In a Q&A, she says the interest differential with US does not matter so much because India has caps on interest sensitive inflows. Overseas investment is a very low share of the country's debt market

"We need to be very careful that growth is not snuffed out and we don't go into another decade of slowdown," Goyal told Reuters in an interview on Tuesday.

Headline retail inflation was at 6.71% in July; it was the first time in four months that the price gauge printed below 7%

Liquidity should be in surplus as long as Fed's quantitative tightening continues

Freebies are never 'free' and when political parties offer such schemes, they must be required to make the financing and trade-offs clear to voters, RBI Monetary Policy Committee (MPC) Member Ashima Goyal said on Sunday, adding this would reduce the temptation towards "competitive populism". Goyal further said a cost is imposed somewhere when governments provide freebies, but this is worth incurring for public goods and services that build capacity. "Freebies are never free... specially harmful are subsidies that distort prices," she told PTI in an interview. Noting that this hurts production and resource allocation and imposes large indirect costs, such as the water table falling in Punjab due to free electricity, Goyal said such freebies come at the cost of low quality health, education, air and water that hurt poor the most. "When parties offer schemes they must be required to make the financing and such trade-offs clear to voters. This would reduce the temptation towards ...

Central bank has to target inflation but with 'awareness of nuances',' she says in interview.

Monetary policy committee says decision to cut repo rate was at the correct time.

External member Jayanth Varma said 100 bps rate hike required 'very soon'

India's economic recovery from Covid is progressing well and the trajectory will continue but persistently high oil prices can play spoilsport, economist Ashima Goyal said

Notwithstanding the pandemic severe shock, India's macroeconomy is more healthy and ready for faster growth, eminent economist Ashima Goyal said on Sunday