The RBI's dovish stance has also provided comfort to the unnerved bond and equity markets.
Pressure is mounting on the Bank of England (BoE) to raise interest rates as the UK's Consumer Prices Index (CPI) in December 2021 hit its highest level since early 1992
However, most previous regimes had lower inflation than national level; now the situation is opposite
A year-on-year analysis is useful in a conceptual way as it accounts for the seasonal impact on the data, but it tells you next to nothing about the current state of the economy.
The time has come to start questioning this target setting business. Since 2009 these targets for financial stability have become a joke everywhere.
Contrary to popular belief, food items aren't among the biggest culprits in this space; palm oil and cotton are two items that have done much more to disrupt the WPI numbers over time
Within the Asian region, the global research and broking house has maintained an overweight stance on China, Korea and Indonesia for 2022. Thailand and Philippines remain their key underweights.
There will always be a gap between actual inflation and household expectation. Yet the latter is broadly indicative of trends and is a critical input for controlling prices
Typically, July - September is a seasonally weak period for gold demand due to monsoons and inauspicious periods like Pitru-Paksha when buyers usually prefer to postpone gold purchases
Survey shows inflation to soften further
Brent crude up nearly 20% in the past month and hit a 3-yr high on Tuesday
Food inflation fell substantially to 3.96 per cent in July from 5.15 per cent in June
The Governor clearly stated that the RBI remains in 'whatever it takes' mode, referring to the desire to support the fledgling recovery
Forecasts for gross domestic product were raised to a 9.2% expansion in the fiscal year ending March 2022, from the previous 9%, while the gross value added outlook edged down slightly to 9%.
"Any hasty withdrawal of monetary policy support will negate the nascent or incipient recovery that is taking place," RBI Governor Shaktikanta Das told Business Standard in an interview
Data limitations should not be an escape clause for not honouring obligations under the inflation targeting regime
Select a debt fund whose average duration is lower than the investment horizon
Ignoring it for long could increase longer-term costs
Inflation, based on Consumer Price Index (CPI), has breached the Reserve Bank of India's (RBI) target range after five months.
A mix of short- and long-term policies to contain price rise in these two commodities while keeping an eye on the interest of the cultivator could be the balm India is looking for