An accommodative stance on monetary policy (unchanged since June'19), in the face of an unfavourable growth-inflation trade-off is understandable for now
India needs a much better curation of policy once again between the Reserve Bank of India and the finance ministry, says former CEA
The inflation shock is adding to uncertainty on whether the central bank would stick to its pledge of keeping policy accommodative to support growth after economy was battered by a deadly Covid wave
Driven by several global and domestic factors, inflation may remain elevated in the coming months, State Bank of India's research division said on Wednesday
The annual retail inflation rate rose 6.30% year-on-year in May, up from 4.29% in April and sharply above analysts' estimate of 5.30%
Data later today might show wholesale prices grew 13.3%, the highest rate in three decades, it's unlikely just yet to fully feed into consumer prices.
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
Going forward, the inflation trajectory is likely to be shaped by uncertainties impinging on the upside and the downside. The rising trajectory of international commodity prices, especially of crude
RBI will go for a "dovish pause" at Wednesday's policy review announcement amid developments such as inflation rise and a likely impact on growth due to lockdowns on rising Covid cases, analysts said
Earlier in December 2020, he raised exposure to Indian equities twice in this and reiterated his bullish on cyclical sectors as economic indicators showed improvement
Economists welcome decision, but argue for a higher upper limit
The govt is expected to make an announcement soon as the current inflation targeting program, introduced in 2016 and valid for 5 years, expires at the end of this month
India's inflation is at "uncomfortably high" level, which is an exception among Asian economies, Moody's Analytics said on Tuesday. Higher fuel prices will keep upward pressure on retail inflation and keep the RBI from offering further rate cuts, said Moody's Analytics, a financial intelligence company. Retail inflation rose to 5 per cent in February, from 4.1 per cent in January. The Reserve Bank mainly takes into account retail inflation while deciding on the monetary policy. Core inflation (which excludes food, fuel and light) was up 5.6 per cent in February, from 5.3 per cent in January, Moody's Analytics said, adding India's inflation is "uncomfortably high". In its macro roundup, Moody's Analytics said inflation is subdued in most of Asia, and expected to only gradually pick up over 2021 because of rising oil prices and economies starting to reopen. Brent crude has climbed 26 per cent this year at around USD 64 per barrel. It was around USD 30 per barrel in March 2020, when
Congress leader Rahul Gandhi on Saturday attacked the government, alleging that under it unemployment, price rise, poverty and income of its "friends" have increased
Durables, automotive, realty sectors hit hard by rise in input costs
Weakness in index heavyweight Reliance Industries and banking and financial stocks was what dragged indices lower even as IT stocks, without much success, tried to cushion the fall
Updates on COVID-19 situation and related news will also remain on participants' radars, says an analyst
The March 5-9 poll of over 50 economists showed retail inflation climbed to 4.83% in February from January's 4.06%
However, some want core to be monitored as well, MPC should be given leeway to choose target
Rate hikes will be something which we can expect when the borrowing programme comes down and economic growth prospects are strong, Nagarjan said