Geopolitical tensions, supply side bottlenecks and post-Covid rise in demand are likely to disrupt inflation calculations. Lack of a clear RBI signal could even affect the rupee.
The developments are unlikely to nudge the MPC to raise interest rates yet, but could force it to spell out its priorities given concerns over the war have overtaken pandemic’s impact.
The Russia-Ukraine crisis has led to a rush towards safe haven assets such as gold and the US dollar. Investors are selling riskier assets such as Indian equities.
The surge in edible and crude oil prices are bound to feed into headline inflation, which has already breached the upper tolerance limit of RBI's 2-6% target range.
New Delhi/Mumbai: The lone dissenter among India’s monetary policy setters sees the central bank’s inflation-targeting credibility at risk by keeping policy loose for too...
Some of the typically sluggish indicators such as consumer sentiment, bank credit have seen a pick up. But escalating geopolitical tensions and higher oil prices pose risks.
RBI will enter into sell-buy swaps worth $5 billion with banks on 8 March to elongate the maturity profile of its forward dollar book, it said in a statement Monday.
While global corporations setting up GCCs in India continue to express confidence in availability of skilled AI engineers, the panel argued that India’s real challenge lies elsewhere.
Without a Congress revival, there can be no challenge to the BJP pan-nationally. Modi’s party is growing, and almost entirely at the cost of the Congress.
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