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 »
All-round uncertainty may prompt the RBI monetary policy committee to retain its accommodative stance while keeping the repo rate unchanged. Read more »
RBI monetary policy committee has kept the repo rate unchanged at 4%, the reverse repo rate at 3.35%, and the marginal standing facility rate and the bank rate at 4.25%. Read more »
RBI's monetary policy committee should consider a 25 basis points cut in repo rate as the economy is on the verge of Covid-19 third wave. Read more »
In a major departure, the RBI has committed its balance sheet to monetary policy in the April 2021 MPC meeting. Read more »
The RBI needs to do a fine balancing act between withdrawing the ultra-accommodative monetary policy and ensuring the smooth completion of the government’s borrowing programme. Read more »
A combination of high inflation and low interest rates has given rise to negative real rates for savers which is not a welcome phenomenon. 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 »
Any agency other than the Reserve Bank of India and lenders interfering will adversely affect the systems already in place in the country’s financial sector. Read more »