High wholesale inflation will reflect in consumer prices in coming months, prompting RBI to revise its policy rates and monetary stance. Read more »
The RBI has come up with an unconvincing forecast that inflation will cool down to 5.3% in the current financial year before easing to 4-4.3% by the end of the next. Read more »
RBI’s monetary policy committee may choose to ignore falling credit off-take, especially the share of private corporate sector. Read more »
Policy rate cuts may not address inflation as a large part of the increase in prices during the second wave of Covid-19 came from rising commodity prices. Read more »
Good news on the indirect tax collection front was eclipsed by a 3.6% contraction in IIP, and 5.52% higher retail inflation. Read more »
A potential increase in country risk premia and pressure on domestic yields caused by the US stimulus could tighten domestic financial conditions. Read more »
Tweaking of weights in inflation indices makes sense, given the policy objectives of RBI policy – price stability and economic growth. Read more »
Emerging markets need some kind of market-based capital flow management and macro-prudential measures as well as more exchange rate flexibility. Read more »
It is surprising that the Reserve Bank of India stuck to a literal, narrow interpretation of its mandate and chose to focus on short-run inflation. Read more »
Economists have warned a repeat of 2010 when the RBI's targeting of CPI inflation led to an industrial slowdown. They say WPI is more relevant for the industry. Read more »