An outgoing member of the Reserve Bank of India’s interest-rate panel said there’s no evidence higher food costs are pushing up prices more broadly in the economy, a reason often cited by Governor Shaktikanta Das for keeping monetary policy tight. Jayanth Rama Varma — an academic whose four-year term as an external member on the … Read more
The Reserve Bank of India (RBI) is likely to keep interest rates unchanged this week as high food prices prevent any tilt toward softer policy, but easing core inflation and a global turn toward lower borrowing costs could make a case for the central bank to shift to a neutral stance in the next quarter … Read more
India consumer price inflation probably edged up in June, snapping five months of declines, largely because of a jump in vegetable prices caused by the damage to crops wrought by extreme weather, according to a Reuters poll of economists. Prices of tomatoes, onions, and potatoes – staples in every Indian kitchen – surged by double … Read more
The Indian Rupee hit all-time lows of 83.4550 this week on a strong US Dollar and FII outflows. The Dollar index has strengthened 2.87% YTD while FII outflows stood at Rs 52,461 crores YTD. Elevated gold and crude oil prices due to heightened geopolitical tensions in the Middle East and between Ukraine and Russia also … Read more
Mumbai: A recent reduction in cooking gas prices is likely to exert a softening effect on inflation that’s also being aided by declining non-food prices, but monetary policy must remain in “risk-minimisation” mode to firmly bring consumer prices back to the legally mandated target, central bank economists said. “Fuel prices remain in deflation, and this … Read more
Retail inflation in India eased a tad in February to 5.09 per cent from 5.10 per cent the prior month. It was at a four-month high of 5.69 per cent in December. The retail inflation in India though is in RBI’s 2-6 per cent comfort level but is above the ideal 4 per cent scenario. … Read more
Kolkata: The Reserve Bank of India believes that global interest rates may have peaked while achieving the inflational target looks like a prolonged journey. In India repeated food shocks are preventing the positive impact of falling core inflation from manifesting itself in lower Consumer Price Index, the central bank said in its state of the … Read more
The coming 12 months are shaping up as the year of the interest-rate cut. After racing ahead with the most aggressive tightening campaign in decades during 2022 and 2023, central banks around the world are poised to begin easing monetary policy as inflation continues to retreat. The shift is captured by Bloomberg Economics, whose aggregate … Read more
