IMF, RBI

Timely action on inflation needed to avert hard landing, says Maurice Obstfeld

The international financial system will face a crisis if the Fed and other central banks fall behind the curve on inflation and tighten abruptly, says former IMF chief economist. Read more »
telecom, trai

A secure savings instrument can solve growth, social security riddles

A savings instrument offering 12% tax-free yield over a 10-year period can trigger the virtuous circle of growth, curtail inflation and create jobs. Read more »
Indian middle class

Spectre of inflation comes back to haunt Indian economy

While several central banks including the Federal Reserve have started acting on inflation, the RBI seems to be worried about the possible fallout on post-Covid economic recovery. Read more »
India facing wholesale inflation trouble

Rising wholesale inflation rings alarm bells for consumers, industry

High wholesale inflation will reflect in consumer prices in coming months, prompting RBI to revise its policy rates and monetary stance. Read more »
Indian middle class

Commodity prices, supply chain disruptions may upset RBI’s inflation math

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 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 »
high fuel prices hurting fragile economic recovery

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 »
inflation and interest rates

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 »
IndiaN economy, $5 trillion 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 »