Path to inclusive growth must be paved by price stability: RBI officials
1 year, 6 months ago

Path to inclusive growth must be paved by price stability: RBI officials

The Hindu  

Taming inflation and anchoring inflation expectations is key to helping revive consumer spending and private capital expenditure and thereby supporting growth, RBI officials wrote in an article in the monthly bulletin released on Friday. This, in turn, is moderating corporate sales and holding back private investment in capacity creation.,” the officials including Deputy Governor Michael Debabrata Patra wrote in ‘State of the Economy’. The RBI’s officials cited Governor Shaktikanta Das’s comments after the Monetary Policy Committee voted to leave interest rates unchanged this month that monetary authorities would need to move towards ensuring inflation was aligned with the “primary target of 4%”. Refuting the view that the RBI’s flexible inflation targeting was the single-minded pursuit of a single target, the officials emphasised that contrary to critics’ perception the central bank’s approach was ultimately “a growth preservation and promotion monetary policy framework”.

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Policymakers, economists pin hopes on government spending to propel economic recovery amid sluggish growth
2 hours, 58 minutes ago

Policymakers, economists pin hopes on government spending to propel economic recovery amid sluggish growth

Live Mint  

After two consecutive quarters of sluggish economic growth, policymakers and economists are banking on a turnaround in the second half of the fiscal year, driven by increased government spending, a boost from the ongoing festive season, and resilient rural consumption. Economists note that while India is expected to retain its status as the fastest-growing major economy over the next five …

Growth slowdown: Why lay a deeper economic malaise at RBI’s door?
1 week, 1 day ago

Growth slowdown: Why lay a deeper economic malaise at RBI’s door?

Live Mint  

Chapter 16 in the Book of Leviticus, Old Testament, enjoins Aaron to organize sacrifices and expiate the sins of all Israelites. Various ministers, government officials and sundry industry representatives have been hinting at RBI culpability in India’s economic slowdown and have called upon its monetary policy committee to cut rates in support of growth. The debate began with this year’s …

DC Edit | Will RBI tweak inflation focus?
1 week, 6 days ago

DC Edit | Will RBI tweak inflation focus?

Deccan Chronicle  

The appointment of Sanjay Malhotra as the new RBI governor continues the long-standing tradition of IAS officers heading the Central bank, a quasi-autonomous body that decides the country’s monetary policy. Mr Malhotra took over the charge of RBI from Shaktikanta Das — the second longest serving governor after Sir Benegal Rama Rau’s stint of seven years and 197 days — …

​Staying the course: On the RBI and inflation
Trending News
2 weeks, 3 days ago

​Staying the course: On the RBI and inflation

The Hindu  

The Reserve Bank of India’s Monetary Policy Committee, in its latest bi-monthly review, has decided to maintain status quo on the benchmark interest rate of 6.50% for the eleventh consecutive time. India’s retail inflation, after trending below the median 4% target, for the first time in five years, for two months, spiked over September and October, with food prices leading …

RBI must restore balance between inflation, growth
2 weeks, 4 days ago

RBI must restore balance between inflation, growth

New Indian Express  

Despite the disappointing slump in economic growth, the RBI on Friday left the benchmark policy repo rate unchanged at 6.5 percent amid inflationary pressures. Maintaining a firm stance on inflation control, Governor Shaktikanta Das stressed that the central bank needed “more credible evidence” on the disinflationary process, which he said was getting prolonged and arduous. As Das rightly noted, there …

RBI keeps key lending rate unchanged at 6.5%, focus remains on tackling inflation
2 weeks, 4 days ago

RBI keeps key lending rate unchanged at 6.5%, focus remains on tackling inflation

India Today  

The Reserve Bank of India's Monetary Policy Committee has decided to maintain the status quo on key interest rates for the 11th consecutive time. Consequently, the standing deposit facility stands at 6.25%, and the marginal standing facility and the bank rate at 6.75%," announced RBI Governor Shaktikanta Das during the policy statement. "Tackling inflation is critical because high inflation reduces …

RBI must restore balance between inflation, growth
2 weeks, 4 days ago

RBI must restore balance between inflation, growth

New Indian Express  

Despite the disappointing slump in economic growth, the RBI on Friday left the benchmark policy repo rate unchanged at 6.5 percent amid inflationary pressures. Maintaining a firm stance on inflation control, Governor Shaktikanta Das stressed that the central bank needed “more credible evidence” on the disinflationary process, which he said was getting prolonged and arduous. As Das rightly noted, there …

Monetary policy review: RBI should stick to its price stability mandate
2 weeks, 5 days ago

Monetary policy review: RBI should stick to its price stability mandate

Live Mint  

One of the lingering effects of covid—‘long covid’—is that economic growth has begun to look a bit like the Sensex, albeit in slow motion. So, last fiscal year’s growth looked rosy in large part because growth in 2022-23 had flagged since 2021-22, when it was 9.7% but on a covid-shrunken GDP base of 2020-21. As the US Fed and major …

Ajit Ranade: Inflation control holds primacy as an objective for RBI
4 weeks ago

Ajit Ranade: Inflation control holds primacy as an objective for RBI

Live Mint  

Not too long ago, a governor of the Reserve Bank of India said that his main job was to protect the value of your money. In this policy framework, called flexible inflation targeting, RBI had a mandate and a numerical target of an inflation band given by the government. And should not the numerical target of inflation exclude food and …

Stable Inflation Is Bedrock for Sustained Growth Says RBI Gov
1 month ago

Stable Inflation Is Bedrock for Sustained Growth Says RBI Gov

Deccan Chronicle  

Mumbai: A stable inflation or price stability is in the best interest of the people and the economy. It acts as a bedrock for sustained growth, enhances the purchasing power of the people and provides a stable environment for investment, the Reserve Bank of India governor Shaktikanta Das said on Thursday. Addressing a high-level policy conference of central banks from …

India’s central bank should adhere to its inflation-targeting mandate
Trending News
1 month ago

India’s central bank should adhere to its inflation-targeting mandate

Live Mint  

Less than four years after the government concluded its review of India’s inflation-targeting regime in April 2021 and opted to keep both its target and nitty-gritty—its target range, indicator, etc—unchanged, its view of inflation targeting seems to be shifting. After commerce and industry minister Piyush Goyal and then finance minister Nirmala Sitharaman called for lower interest rates, on Tuesday chief …

RBI Maintains Status Quo on Benchmark Rates, Emphasizes Price Stability
2 months ago

RBI Maintains Status Quo on Benchmark Rates, Emphasizes Price Stability

Live Mint  

RBI Governor Shaktikanta Das emphasizes the importance of maintaining price stability to support sustainable growth in India. He states that the central bank cannot afford another inflation surge and that a neutral stance on benchmark rates is the best approach at this juncture. The MPC decides to maintain the policy rate unchanged at 6.5 percent, marking the tenth consecutive meeting …

India's Robust Economy Maintains Stability, Sets New Fiscal Deficit Target
2 months ago

India's Robust Economy Maintains Stability, Sets New Fiscal Deficit Target

Hindustan Times  

India successfully kept inflation within manageable limits, achieving the lowest point in its fiscal deficit glide path in the next financial year. The country's robust macroeconomic fundamentals, coupled with strategic focus on strengthening ties with nations that share strategic coherence, played a crucial role in maintaining price stability despite global economic challenges. The focus on debt management and fiscal consolidation …

‘Abandoning RBI’s inflation target regime could be risky, counterproductive’
4 months ago

‘Abandoning RBI’s inflation target regime could be risky, counterproductive’

The Hindu  

The Reserve Bank of India's inflation targeting regime has worked well and need not be abandoned in favour of a more discretionary regime that could be risky and counterproductive, a new research paper has said. The paper titled 'Inflation Targeting In India: A Further Assessment' said the weight of food-price inflation in the CPI inflation basket should be reduced to …

RBI maintains calm against global noise
4 months, 2 weeks ago

RBI maintains calm against global noise

Live Mint  

The Reserve Bank of India’s bi-monthly monetary policy orchestrated on 8th August 2024 ensured that the “elephant” was deep in the forest before changing the policy. The RBI’s Monetary Policy Committee voted with 4:2 to keep the policy repo rate and stance unchanged at 6.50% and “withdrawal of accommodation” respectively. Like last policy, the two of the external MPC members, …

DC Edit | Cautious RBI targets inflation
8 months, 2 weeks ago

DC Edit | Cautious RBI targets inflation

Deccan Chronicle  

The Reserve Bank of India-led Monetary Policy Committee has once again kept the policy repo rate unchanged at 6.5 per cent. Retail inflation hovered around 5.1 per cent during January and February 2024, which is a marginal decline from 5.7 per cent in December 2023. Food inflation — which is the most important focus area for the world’s populous country …

Central bank work on lowering prices in delicate balance
10 months ago

Central bank work on lowering prices in delicate balance

New Indian Express  

The Reserve Bank of India appears to be in its final leg of bringing inflation to heel. Though headline inflation is showing steady signs of easing, the central bank’s six-member Monetary Policy Committee is steadfast on retaining repo rate at 6.5 percent as any “premature move may undermine the success achieved so far”. As we navigate the ‘last mile’ of …

What is good for another market need not be good for us: RBI Governor Shaktikanta Das
11 months, 1 week ago

What is good for another market need not be good for us: RBI Governor Shaktikanta Das

India TV News  

Reserve Bank of India Governor Shaktikanta Das said that the central bank will not follow other countries in regulating cryptocurrencies, emphasising that decisions taken in other markets may not necessarily be suitable for India. "What is good for another market need not be good for us. Therefore our views—both that of the Reserve Bank and personally that of mine—remain the …

Growth getting stronger foothold, inflation coming under control, says RBI Governor Shaktikanta Das
1 year, 1 month ago

Growth getting stronger foothold, inflation coming under control, says RBI Governor Shaktikanta Das

The Hindu  

Reserve Bank Governor Shaktikanta Das on November 9 said economic growth in India is getting stronger foothold while inflation is also coming under control driven by the inherent dynamism and a prudent policy mix. Driven by its inherent dynamism and supported by a prudent policy mix, growth is getting stronger foothold while inflation is also coming under control," the governor …

RBI MPC Meet Next Week: The Dilemma Between Growth and Inflation
1 year, 2 months ago

RBI MPC Meet Next Week: The Dilemma Between Growth and Inflation

News 18  

Written By Srikanth Subramanian: The RBI MPC is set to come out with its interest rate decision on October 6. Inflation in August remained beyond the RBI’s upper tolerance limit at 6.83 per cent, but significantly lower than its peak of 7.44 per cent in July. Core CPI, excluding food and fuel items, remained largely unchanged at 4.8 per cent …

DC Edit | Govt's multi-pronged policy might work against inflation
1 year, 4 months ago

DC Edit | Govt's multi-pronged policy might work against inflation

Deccan Chronicle  

India is not immune to the inflationary winds blowing across the world. Swiftly, government insiders unveiled discussions about a substantial plan, totalling Rs 1 lakh crore, to quell the upswing in July’s inflation. This move would mark a second consecutive year of such manoeuvres, harking back to the Rs 2.1 lakh crores initiative unveiled last year to mitigate costs for …

Govt. stays guarded over prices even as core inflation softens
1 year, 4 months ago

Govt. stays guarded over prices even as core inflation softens

The Hindu  

Even as overall price stability has likely been restored in the economy with core inflation softening to a three-year low in the first quarter of 2023-24, the food inflation spike in June due to higher prices for vegetables, fruit and pulses underscores the need for a guarded approach, the Finance Ministry said on Thursday. “As inflation has been reined in …

RBI holds rates, vows to keep price stability
1 year, 6 months ago

RBI holds rates, vows to keep price stability

The Hindu  

The Monetary Policy Committee of the Reserve Bank of India, on the basis of an assessment of the current and evolving macroeconomic situation, on June 8 decided to keep the policy repo rate under the liquidity adjustment facility unchanged at 6.50% The standing deposit facility rate remains unchanged at 6.25% and the marginal standing facility rate and the Bank Rate …

RBI holds rates but signals tight monetary policy ahead
1 year, 6 months ago

RBI holds rates but signals tight monetary policy ahead

Hindustan Times  

India's central bank kept its key lending rate steady for a second straight policy meeting on Thursday, as widely expected, but signalled that monetary conditions will remain tight for some time as it looks to further curb inflationary pressures. The RBI maintained its policy stance of "withdrawal of accommodation" to ensure inflation progressively aligns with the committee's target while remaining …

Pause and effect: On the temporary pause to inflation-battling monetary tightening
1 year, 8 months ago

Pause and effect: On the temporary pause to inflation-battling monetary tightening

The Hindu  

The Reserve Bank of India’s Monetary Policy Committee has unanimously and wisely decided to apply a temporary pause to its inflation-battling monetary tightening by keeping the repo rate unchanged. Notwithstanding his assertions that India’s ‘banking and non-banking financial service sectors remain healthy and economic activity remains resilient’, it is the spectre of rising credit costs posing risks to both consumption …

These 5 corps are not allowing inflation in India to ease, says ex-RBI official
1 year, 8 months ago

These 5 corps are not allowing inflation in India to ease, says ex-RBI official

Live Mint  

Inflation in India: India’s biggest conglomerates, which wield immense pricing power in the retail, resources and telecommunication sectors, are contributing to elevated inflation and should be broken up, a former central banker said. The “Big 5” consisting of Reliance Group, Tata Group, Aditya Birla Group, Adani Group and Bharti Telecom have grown at the expense of smaller local firms, said …

RBI lifts loan costs to tame inflation
1 year, 10 months ago

RBI lifts loan costs to tame inflation

The Hindu  

The Monetary Policy Committee of the Reserve Bank of India on Wednesday raised the benchmark lending rate by 25 basis points to 6.5% as the RBI targets persistently high core or underlying inflation that it sees as a risk to the improving outlook for the economy. Observing that the rate increases since May were still working their way through the …

Why RBI is finding it tough to tame inflation
1 year, 11 months ago

Why RBI is finding it tough to tame inflation

Live Mint  

Even as inflation has crept downwards, the battle against it continues. Inflation remains elevated and persistent across countries as they grapple with food and energy price shocks and shortages…The correction in industrial input prices and supply chain pressures, if sustained, could help ease pressures on output prices; but the pending pass-through of input costs could keep core inflation firm.” Blunt …

India’s economic growth ’extremely fragile’, needs all support: RBI MPC member
2 years ago

India’s economic growth ’extremely fragile’, needs all support: RBI MPC member

Live Mint  

India's economic growth is now 'extremely fragile' and needs all the support that it can get, as private consumption and capital investment are yet to pick up, said RBI Monetary Policy Committee member Jayanth R Varma on Friday. He said that exports and government spending supported the Indian economy through the pandemic, and now other engines of growth, i.e, private …

Indian economic growth 'extremely fragile', needs all support: RBI Monetary Policy Committee member Jayanth Varma
2 years ago

Indian economic growth 'extremely fragile', needs all support: RBI Monetary Policy Committee member Jayanth Varma

The Hindu  

India's economic growth is now 'extremely fragile' and needs all the support that it can get, as private consumption and capital investment are yet to pick up, RBI Monetary Policy Committee member Jayanth R Varma said on December 23. Mr. Varma further said out of the four engines of growth for the economy, exports and government spending supported the Indian …

RBI must keep playing it safe
2 years ago

RBI must keep playing it safe

Hindustan Times  

The last three years have shown why fiscal and monetary policy have to remain conservative and nimble, and why policymakers themselves have to be resolute. Last week, the monetary policy committee of the Reserve Bank of India raised the interest rate by 0.35 percentage points to 6.25% and, according to its policy statement, “decided to remain focused on withdrawal of …

DC Edit | Promising signs in economy
2 years ago

DC Edit | Promising signs in economy

Deccan Chronicle  

The RBI governor Shaktikanta Das-led Monetary Policy Committee hiked the repo rate by 35 basis points to 6.25 per cent — the fifth straight increase in the current cycle since May 2022 — as it seeks to fight global uncertainty and uncomfortable levels of inflation. The RBI governor’s post-policy meeting comments hint that the central government remains focused on inflation, …

RBI may need a revised strategy to anchor inflation expectations
2 years, 2 months ago

RBI may need a revised strategy to anchor inflation expectations

Live Mint  

The world is struggling with higher-than-desirable inflation. Household inflation expectations, thus, form a critical piece of information for central banks, especially in periods of high inflation. We compared inflation expectations of urban households over time with the actual consumer inflation in urban areas, starting with 2016, when RBI moved to the current inflation-targeting framework. Whether and how variations in household …

RBI Bulletin: Battle Against Surging Inflation Will Be Dogged, Prolonged
2 years, 2 months ago

RBI Bulletin: Battle Against Surging Inflation Will Be Dogged, Prolonged

ABP News  

The Reserve Bank of India in its article on Monday said that the battle against inflation will be dogged and prolonged, given the long and variable lags with which monetary policy operates. Retail inflation spiked to 7.41 per cent in September, remaining above central bank’s upper tolerance level of 6 per cent for the ninth month in a row. With …

Boxed in: The Hindu Editorial on need for inflation control as top policy priority
2 years, 2 months ago

Boxed in: The Hindu Editorial on need for inflation control as top policy priority

The Hindu  

The Reserve Bank of India’s rate decision on Friday was ultimately inevitable. RBI Governor Shaktikanta Das cited the ‘aggressive monetary policy actions and even more aggressive communication from advanced economy central banks’ as a third shock -- following the pandemic and Russia’s invasion of Ukraine — which he said had thrust the ‘global economy into the eye of a new …

Why the RBI is unlikely to slow down in curbing inflation
2 years, 2 months ago

Why the RBI is unlikely to slow down in curbing inflation

Live Mint  

Global growth is slowing rapidly, inflation is stubbornly high and central banks in developed nations are hiking interest rates by magnitudes not seen in decades. At other times, new data sources are introduced to make statistics more accurate, particularly to capture India’s informal sector better. Why the wait for new trade policy just got longer Busted: The myth of India …

Synchronize policies to counter weak growth and high inflation
2 years, 3 months ago

Synchronize policies to counter weak growth and high inflation

Live Mint  

There is a wide consensus that India’s gross domestic product will grow at 7%-7.5% during 2022-23. Though mainly driven by high food and energy price inflation, high headline inflation also reflects elevated inflation across a wide range of non-food, non-fuel core inflation components. Apart from domestic inflation, RBIs policy stance also takes into account other factors, in particular global supply …

How ideology muddled inflation control in India
2 years, 3 months ago

How ideology muddled inflation control in India

The Hindu  

The Governor of the Reserve Bank of India reportedly stated that the inflation rate would be brought to its target level of 4% within 24 months. Though the characteristics of India’s economy vary substantially when compared to those of the industrialised West, their governments follow the same approach to inflation control, termed ‘inflation targeting’ and implemented by their central banks. …

Tackling Inflation Is RBI's Top Priority, Trying Not To Hurt Growth, Says Shaktikanta Das
2 years, 3 months ago

Tackling Inflation Is RBI's Top Priority, Trying Not To Hurt Growth, Says Shaktikanta Das

News 18  

Reserve Bank of India Governor Shaktikanta Das on Friday said tackling inflation is the central bank’s top priority and the RBI will try to minimise its impact on growth. India’s GDP rose 13.5 per cent in the June 2022 quarter. However, the Q1FY23 growth fell short of the RBI’s projection of 16.2 per cent. The RBI’s Monetary Policy Committee hiked …

RBI Bulletin: India's Inflation Still Elevated, May Need Monetary Policy Response
2 years, 4 months ago

RBI Bulletin: India's Inflation Still Elevated, May Need Monetary Policy Response

ABP News  

India’s inflation may still require a monetary policy response going forward as it remains above the target range even though it has eased in recent months, the Reserve Bank of India said in the monthly bulletin released on Thursday. The RBI said, “Inflation has edged down, but its persistence at elevated levels warrants appropriate policy responses to anchor expectations going …

RBI must revise its inflation target range -- upwards
2 years, 5 months ago

RBI must revise its inflation target range -- upwards

Live Mint  

Last year, the finance ministry and Reserve Bank of India agreed to maintain our inflation target at 4%, with a 2% variation on either side as the tolerance limit, from 1 April 2021 to 31 March 2026. Unless RBI recalibrates the model with new data or rethinks the methodology, it is possible that the current inflation target rate “imparts a …

RBI to remain flexible while aiming to tame inflation: Governor Shaktikanta Das
2 years, 5 months ago

RBI to remain flexible while aiming to tame inflation: Governor Shaktikanta Das

The Hindu  

Reserve Bank of India will continue calibrating policy to preserve and foster macroeconomic stability while bringing down inflation and will remain flexible in its approach, Governor Shaktikanta Das said on Saturday. The global economy is going through an uncertain time and concerns around growth and inflation persist, but the central bank believes that there could be some respite from rising …

Recession in advanced economies may cool prices in India
2 years, 5 months ago

Recession in advanced economies may cool prices in India

Live Mint  

Recessions in advanced economies may benefit India in a “perverse way” as a moderation in global commodities prices will help cool domestic inflation, according to Citigroup Inc.’s head of economics for the country. “India being a net importer of commodities should benefit on the inflation front,” Samiran Chakraborty, managing director and chief economist for India at Citigroup, said in an …

Inflation expected to remain higher than RBI tolerance level till Dec, says Shaktikanta Das
2 years, 5 months ago

Inflation expected to remain higher than RBI tolerance level till Dec, says Shaktikanta Das

Firstpost  

The RBI governor said inflation is currently the biggest challenge confronting most economies in the world and the current surge is primarily because of global factors New Delhi: India’s headline inflation is expected to remain higher than the Reserve Bank of India upper tolerance level of six per cent till December 2022, RBI Governor Shaktikanta Das has said. “Until December, …

Inflation Biggest Challenge but RBI Taking Steps to Deal With It, Says Shaktikanta Das
2 years, 5 months ago

Inflation Biggest Challenge but RBI Taking Steps to Deal With It, Says Shaktikanta Das

News 18  

Inflation has become the biggest challenge for several countries and the Reserve Bank of India is taking steps to effectively deal with it, the central bank’s governor Shaktikanta Das has said. In an interview, the RBI chief said that the bank had been taking measures to rebalance liquidity through VRRRs, roll back the expansion of our balance sheet and the …

RBI shows resilience in the face of shocks
2 years, 6 months ago

RBI shows resilience in the face of shocks

Hindustan Times  

A remarkable feature of India’s governance model in the last few years has been its ability to provide relative resilience in the face of unanticipated shocks. But, as RBI has also made clear, while it is fighting to check inflation, most of the shocks to prices have emanated from factors beyond India’s control. And with RBI’s peers also fighting inflation …

Retail inflation: The step ahead
2 years, 7 months ago

Retail inflation: The step ahead

Hindustan Times  

Mint Street and North Block must maintain close coordination in making sure that our policy response does not throw the baby out with the bathwater But will a monetary tightening be able to control inflation? That the April inflation number would be higher than the 6.95% reading in March 2022 was a given, especially after the unscheduled rate hike by …

‘Inflation is the biggest challenge now’
2 years, 7 months ago

‘Inflation is the biggest challenge now’

The Hindu  

Inflation is now the biggest challenge for India’s policy makers rather than the U.S. Federal Reserve’s taper programme and measures like interest rate increases to stem rising prices could dent the fledgling consumption demand recovery from the pandemic not just in India but globally, a senior official said on Wednesday. “The nearly 7% inflation print for March came four days …

Inflation control needs another model
2 years, 7 months ago

Inflation control needs another model

The Hindu  

Inflation is back as a talking point in the public arena, some would say belatedly, for wholesale price inflation has been in the double digits for over 12 months. It may appear contradictory to ask whether the RBI’s stated policy of ‘inflation targeting’, implemented through changes in the interest rate, can control inflation, but we show here why that would …

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