RBI has so far taken a leaf each from the US Fed & ECB’s books to manage bond yields using unconventional tools, as inflation keeps it from cutting rates.
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.
RBI’s regulatory measures to allow banks to lend more to some sectors may help revive credit for a quarter or so, but they don’t address fundamental issues.
After five rate cuts last year, inflation well above 2%-6% target & govt’s plans to widen its budget deficit, RBI expected to pause for a second meeting.
On 6 December 1948, TT Krishnamachari spoke in the Constituent Assembly during a debate on Article 19, supporting it as it is, including how it's framed in the matter of religion.
Extreme weather events have impacted 50% of corporate respondents to a recent survey. This underlines the importance of significant action now to increase climate resilience.
Iran used Shahab-3, along with Fattah-1 hypersonic missiles, to attack Israel after the killing of Hezbollah leader Hasan Nasrallah in air strikes on Lebanon's Beirut.
How come Indonesia, Malaysia, Turkey and Sri Lanka remain constitutional, democratic and stable despite Islam and Buddhism respectively, but Pakistan, Bangladesh and Myanmar don’t?
Any new idea like funding for lending for interest rate re-engineering is welcome so long as RBI does not finally end up holding the bucket of all bad loans! In the Indian context of largely public sector banks, crony capitalism, fixing the deals culture, weak legal machinery, ineffective bankruptcy code etc., any such new idea should be taken up carefully. Otherwise it could be return of UPA II saga of phone banking by other means.
We need more focus on structural reforms for ease and lowering cost of doing business and making economy competitive internationally. The government is shying away from such approach and instead doing things in bits and pieces. It should ideally decide the taxation rate, both direct and indirect, at globally competitive levels and then look to manage the resultant fiscal deficit by other means, like sale of assets or reduction of costs etc. Unless this common sense approach is followed, we end up in making a mess around us. Maximizing tax revenue from all possible sources cannot be the objective by itself. Government should not overreach itself to invent new ways of spending money in the hope of raising more taxes. It should rather focus on efficiency of doing governance and that should good results.
Hence, RBI should not cross its boundaries without due diligence and wait for the government do its job properly.
What happened to RBI governor who is an Indian that thinks like an Indian, chaiwala???
Any new idea like funding for lending for interest rate re-engineering is welcome so long as RBI does not finally end up holding the bucket of all bad loans! In the Indian context of largely public sector banks, crony capitalism, fixing the deals culture, weak legal machinery, ineffective bankruptcy code etc., any such new idea should be taken up carefully. Otherwise it could be return of UPA II saga of phone banking by other means.
We need more focus on structural reforms for ease and lowering cost of doing business and making economy competitive internationally. The government is shying away from such approach and instead doing things in bits and pieces. It should ideally decide the taxation rate, both direct and indirect, at globally competitive levels and then look to manage the resultant fiscal deficit by other means, like sale of assets or reduction of costs etc. Unless this common sense approach is followed, we end up in making a mess around us. Maximizing tax revenue from all possible sources cannot be the objective by itself. Government should not overreach itself to invent new ways of spending money in the hope of raising more taxes. It should rather focus on efficiency of doing governance and that should good results.
Hence, RBI should not cross its boundaries without due diligence and wait for the government do its job properly.