Tuesday, 24 May, 2022
TopicReserve Bank of India

Topic: Reserve Bank of India

India’s retail inflation jumps to 7.79% in April, an 8-year high

The consumer price index inflation figure stood at 6.95 per cent last month, the highest since September 2014.

Economists foresee RBI hiking interest rates by 100 basis points by next March

The benchmark repurchase rate is expected to climb to 5.40% in four quarter-point moves during the period, according to a Bloomberg survey.

Decision to keep rates low has generated weakness for the rupee

RBI kept interest rates unchanged in December 2021 & in February 2022because Ministry of Finance is building an “escape clause,” allowing inflation to increase above the target goal of 4%.

RBI stays accomodative, warns of ‘tectonic shifts’

Recovery in Asia’s third-largest economy is facing fresh challenges from the war in Ukraine and Covid lockdowns in China, which risk exacerbating a global supply squeeze and price pressures.

SBI, Kotak asset managers split on whether RBI is falling behind in normalising inflation policy

The Reserve Bank of India has confounded market expectations with its accommodative policy even as inflation breached its 6% limit for two months.

RBI rejects inflation fears, deputy governor says ‘it’s actually declining’

Michael Patra's rebuttal follows several economists expressing doubts over RBI’s benign inflation forecast even though oil prices are surging and demand returns as pandemic curbs are eased.

Emerging Asian countries, including India, running out of room to keep monetary policy on pause

The Reserve Bank of India’s move last week to keep the rates unchanged surprised markets, which had expected the bank to raise them to begin policy normalization after Covid.

Will RBI’s digital rupee be a hit? Well, there are so many ifs and buts

The currency is likely to have stable value, limiting appeal as an asset. It may be safer than holding cash, but tech, connectivity will pose issues, if meant for wide use by households.

RBI’s dovish inflation view pushes back India tightening call for low interest rates

Citigroup sees RBI lifting repo rate no earlier than October, versus its earlier August prediction. HSBC shifts to July-September from April-June, and Barclays moves to August from April.

RBI’s double-edged decision — not hiking rates helps govt borrow, but runs inflationary risk

Lack of dedicated debt agency leads to conflict between managing govt debt and inflation. RBI chose former, but rate hike would have helped normalisation, attracted foreign funds.

On Camera

YourTurn

Golden Temple

What Akal Takht must know about harmonium and music before banishing it from Golden Temple

In an era where India’s past and ‘purity’ are constantly being dug up and debated, the humble harmonium has become the latest victim.

World’s $300 trillion in debt. Here’s what it means for services like health, education

To meet debt payments, at least 100 countries will have to reduce spending on essential services, the IMF estimates.

Defence

Boeing's F/A-18 Super Hornet pulls off its first successful launch from a ski-jump at Naval Air Station Patuxent River, US | Photo credit: Boeing

2 American Super Hornets in India as Boeing looks to showcase fighters for Navy deal

Navy looking at about 26 multi-role deck-based fighters for its aircraft carrier. Visit by Super Hornets comes close on heels of similar trip by competitor Rafale M of Dassault Aviation.

Mandir or Masjid? New surveys not needed, just acceptance of truth & move towards reconciliation

That temples were destroyed and mosques built is undisputed history. The past can’t be changed, but we can’t deny the wrongs of the past either before we consider reconciliation.
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