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 »
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 »
A sharper cut in the policy rates by RBI would have been possible in August review, but for high inflation rate in the first three months of the current year. Read more »