RBI's MPC will be overhauled with 3 new external members expected to join by October & possibly changes to its targeting framework introduced next year.
RBI expects headline inflation to remain elevated in the second quarter of 2020-21. It also sees real GDP shrinking in the first half as well as the full year.
CPI-based inflation has remained over 6% for last 2 quarters. With NPAs also expected to rise significantly, RBI could focus on financial stability this time.
With gradual resumption of supply chains, inflation may come down. Data has also been limited by the lockdown, so the MPC should wait before changing rates.
Tax breaks may have a greater multiplier effect on the economy than govt spending, says RBI's monetary policy committee independent member Chetan Ghate.
RBI's Monetary Policy Committee was formed in 2016 for inflation targetting. Currently, interest rates are decided by a majority vote in the 6 member-committee.
The RBI has cut key policy rates by 25 basis points in the central bank's third consecutive rate cut, which comes amid slow growth for the fourth consecutive quarter.
New CPI series will take 2024 as base year, will provide more accurate measure of inflation, spending on digital services. Expected to enhance representation and reliability, says Saurabh Garg.
The agreement, signed after meeting between Rajnath and US Secretary of War Pete Hegseth on sidelines of ADMM-Plus in Kuala Lumpur, aims to deepen bilateral ties in the critical sector.
This world is being restructured and redrawn by one man, and what’s his power? It’s not his formidable military. It’s trade. With China, it turned on him.
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