RBI monetary policy review

RBI seen retaining policy rates, accommodative stance

RBI’s monetary policy committee may choose to ignore falling credit off-take, especially the share of private corporate sector. Read more »
india wholesale and retail inflation

Global factors driving inflation, fuel tax cut seems the only option

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 »
indirect tax collections grew while gst mopup shrank

Indirect tax windfall brings cheer amid bad news on inflation, IIP fronts

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 »
President Biden's $1.9 trillion US stimulus package

$1.9 trillion US stimulus package to boost India growth, nudge inflation

A potential increase in country risk premia and pressure on domestic yields caused by the US stimulus could tighten domestic financial conditions. Read more »
ADB's GDP growth forecast for Indian economy

Why RBI cannot ignore the food price dynamics while fixing rates

Tweaking of weights in inflation indices makes sense, given the policy objectives of RBI policy – price stability and economic growth. Read more »

RBI must pause rate cuts to anchor inflation expectations

Emerging markets need some kind of market-based capital flow management and macro-prudential measures as well as more exchange rate flexibility. Read more »

RBI may keep rates unchanged, but 25 bp cut desirable

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 »
Budget 2021 smacks of fiscal conservatism

RBI will resume rate cut spree sooner than later

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 »
Unprecedented exports growth in India

RBI policy must focus on financial system stability

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 »
ADB's GDP growth forecast for Indian economy

Inflation focus must end: RBI should cut rates by 100 bps

There are enough reasons to be optimistic – the economy had a good rabi crop, the monsoon has been good and the kharif crop is also expected to be good. Read more »