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 »
The monetary policy amid a major shock like the second wave of Covid-19 can afford to look through some inflationary impulses to support economic growth. 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 »
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 »
In the transition from lockdown to normalcy, there will be logistics problems, supply chain disruptions and market fragmentation that need to be tackled. Read more »
The Reserve Bank of India should pause rate cuts, must signal that it continues on the accommodative path and still has space for future cuts in policy rates. Read more »
The Reserve Bank needs to have a sectoral approach to help revive the economy hit by the new coronavirus outbreak. Read more »