News Muncher - category monetary policy

3 days, 6 hours ago

Revise India’s inflation gauge but handle the revision with care

The remarkable insights into the changing pattern of household consumption thrown up by the latest Household Consumption Expenditure Survey 2023-24 are of special relevance for a wide range of policy decisions. In recent months, Union ministers have expressed qualms over RBI’s apparent unwillingness to look through inflation driven by food prices in its formulation of monetary policy. In December, the …

Food India Inflation Monetary Policy Weight Rbi Items

1 week, 4 days ago

Will Trump respect the Fed’s independence?

Live Mint

When I joined the Federal Reserve Board as vice chairman in 1994, the central bank was already the center of the universe for financial-market specialists. During Mr. Trump’s first term, he frequently lambasted the Federal Open Market Committee, and Chairman Jerome Powell personally, for not cutting rates fast enough. Replacing him with someone more to Mr. Trump’s liking is also …

Independence Monetary Policy Trump Term Powell Federal Reserve Fomc

2 weeks, 2 days ago

A new year’s resolution for the Federal Reserve

Live Mint

The Federal Reserve’s decision to cut rates in December is puzzling yet also illuminating. At the end of 2023 the median Federal Open Market Committee member expected that 2024 would bring economic growth of 1.4%, core inflation of 2.4% and three cuts in the federal-funds rate. That’s true no matter the Fed’s framework, and no rule would have counseled the …

Inflation Monetary Policy Bank Rules Fed Rate Rates

2 weeks, 3 days ago

Debate over excluding food inflation from monetary policy reaches MPC

Live Mint

Mumbai: Two newly appointed Monetary Policy Committee members have rekindled the discussion started by the Economic Survey on excluding food inflation from the monetary policy framework. The other MPC member Nagesh Kumar too noted that, "Monetary policy, being a demand management tool, has limitations in addressing inflation largely driven by a supply-side shock driving up vegetable prices. In my view, …

Policy Monetary Policy Interest Rates Food Inflation Singh Members Rbi

3 weeks ago

RBI’s monetary policy panel divided over timing of rate action

Live Mint

Mumbai: The rate-setting panel of India’s central bank remained divided over the timing of monetary policy action aimed at reviving India’s economic growth, even as they expect price rise to cool off, show minutes of the 6 December meeting, released on Friday. All three Reserve Bank of India members in the six-member monetary policy committee insisted that maintaining policy status …

Food India Policy Growth Inflation Monetary Policy Economic Growth

3 weeks ago

Price stability crucial for India’s economic growth, says RBI

Live Mint

The foundations for high growth in the Indian economy can be achieved through durable price stability, the monetary policy committee of the Reserve Bank of India said. "The MPC emphasises that strong foundations for high growth can be secured only with durable price stability," the minutes of the Monetary Policy Committee meeting held in December said. "The MPC also decided …

India Growth Inflation Monetary Policy Cent Mpc Price Stability

3 weeks ago

Does the Fed even know what it’s trying to do?

Live Mint

We might as well confront it head-on: What the Federal Reserve did this week doesn’t make any sense. The Federal Open Market Committee on Wednesday cut the target range for the Fed funds rate by one-quarter percentage point, to 4.25% to 4.5%, its third consecutive rate reduction. Because the first, in September, was a “jumbo" half-percent cut, the central bank’s …

Policy Inflation Monetary Policy Financial Conditions Officials Fed Rate

US Fed cuts interest rates but cautions for year ahead

Al Jazeera

Slower progress on inflation translates into a slower pace of rate cuts, especially as economic growth is brisk. “Economic activity has continued to expand at a solid pace” with an unemployment rate that “remains low” and inflation that “remains somewhat elevated”, the central bank’s rate-setting Federal Open Market Committee said in its latest policy statement on Wednesday. That is half …

Policy Inflation Monetary Policy Trump Fed Rate Rate Cuts

3 weeks, 4 days ago

Vivek Kaul: RBI’s new governor will have to confront a tricky old trilemma

Live Mint

Shaktikanta Das’ tenure as governor of the Reserve Bank of India has come to an end. For companies, lower rates mean lower interest outflows on their existing borrowings and hence higher profits and possibly higher stock prices. For market participants, lower rates mean that retail investors are incentivized to invest more in stocks in search of higher returns, leading to …

Food India Market Inflation Monetary Policy Control Interest

3 weeks, 6 days ago

Why RBI is central to the country’s economy

New Indian Express

The art of setting interest rates Maintaining macroeconomic stability and financial stability is the holy grail of any central bank. The pursuit of sustainable growth and low and stable inflation have been fundamental to central banking activities since the early 19th century, though financial stability got equal prominence, thanks to black swan events like the Great Depression of 1930s and …

Economy Policy Growth Financial Inflation Monetary Policy Interest Rates

1 month ago

Major blow for Aussies just before Christmas as Reserve Bank makes interest rate decision

Daily Mail

Australian home borrowers have been dealt a severe blow just before Christmas with the Reserve Bank denying them a rate cut. Governor Michele Bullock gave a strong hint rate cuts could be months away with inflation still too high, ahead of an election next year. Australian home borrowers have been dealt a severe blow just before Christmas with the Reserve …

Policy China Inflation Monetary Policy High Cent Rate

1 month ago

From North Block to Mint Street: Sanjay Malhotra has his task cut out as RBI’s next governor

Live Mint

On Monday, we finally got the news that every Indian with even a passing interest in the economy had been waiting for. Ending weeks of speculation over whether Shaktikanta Das would be given an extension of an already extended term, the government announced that revenue secretary Sanjay Malhotra will take over as the next governor of the Reserve Bank of …

India Monetary Policy Bank Central Rbi Das Governor

1 month ago

China eases monetary policy stance, vows more fiscal support

Live Mint

China’s top leaders plan to loosen monetary policy and expand fiscal spending next year, as Beijing braces for a second trade war when Donald Trump takes office next month. The 24-man Politburo led by President Xi Jinping announced it will embrace a “moderately loose” strategy for monetary policy in 2025, marking its first major shift in stance since 2011. The …

Policy China Monetary Policy Politburo Stance Vows

1 month ago

China still has further room for RRR, interest rate cuts

China Daily

By Sheng Songcheng | China Daily | Updated: 2024-12-09 10:35 The People's Bank of China, the country's central bank, proposed in its third quarter monetary policy implementation report that a reasonable pickup in prices should be taken as a key consideration in monetary policymaking to keep prices at a reasonable level. And with the central bank maintaining its stance on …

China Financial Monetary Policy Local Financial Institutions Interest Rate

1 month ago

India replaces central bank governor in a surprise move

Al Jazeera

With India’s economic growth slowing down and inflation rising, the new governor will have challenges to deal with. India has appointed career civil servant Sanjay Malhotra as its new central bank governor in a surprise move that leaves markets guessing about the future direction of monetary policy. Financial markets had expected the Reserve Bank of India’s current Governor Shaktikanta Das …

India Policy Growth Inflation Monetary Policy Bank Central

China's leaders vow more 'relaxed' monetary policy in 2025

New Indian Express

BEIJING: Chinese President Xi Jinping and other top leaders said Monday they would adopt a more "relaxed" approach to monetary policy as they hashed out plans to boost the economy next year. The world's second-largest economy is battling sluggish domestic consumption, a persistent crisis in the property sector and soaring government debt -- all of which threaten Beijing's official growth …

Monetary Policy Domestic Consumption

1 month ago

Stalled demand, sluggish growth

Hindustan Times

Markets got the September quarter GDP number wrong when it came in at 5.4% instead of the widely expected 6.5%. Growth forecasts for quarters ending December 2024 and March 2025 now stand at 6.8% and 7.2%, respectively, instead of the 7.4% for both these quarters in the October resolution. To be sure, RBI’s latest growth projection is still in the …

Growth Monetary Policy Rbi

1 month ago

RBI MPC Dec 2024: Central Bank Slashes CRR By 50 Bps, Here's What It Means

ABP News

The Reserve Bank of India’s Monetary Policy Committee on Friday announced a reduction in the Cash Reserve Ratio by 50 basis points. Kaushal Agarwal, Co-Founder and Director, The Guardians Real Estate Advisory stated, "The RBI's decision to keep the repo rate unchanged and lower the CRR shows strategic efforts to balance more cash flow with inflation control. Reducing the CRR …

Monetary Policy Bank Cent Rbi Dec Mpc Crr

RBI monetary policy decision: Is an RBI rate cut coming after Union Budget 2025? What experts suggest

Live Mint

RBI Monetary Policy: The Reserve Bank of India's Monetary Policy Committee on December 6 announced that it would maintain the repo rate at 6.5 per cent for the eleventh consecutive time, in line with market expectations. RBI cut its GDP growth forecast for FY25 to 6.6 per cent and raised its inflation projection for FY25 to 4.8 per cent. Sujan …

Policy Growth Inflation Economic Growth Economic 2025 Cent

1 month ago

RBI Policy Outcome: RBI cuts cash reserve ratio by 50 bps to 4%

Live Mint

RBI Monetary Policy: The Reserve Bank of India on Friday, December 6 as part of its policy decision decided to cut the cash reserve ratio by 50 basis points to 4%. This move is likely to ease liquidity conditions The cash reserve ratio is the percentage of deposits that banks are required to hold as cash. CRR cut of 50 …

Policy Rbi Mpc 50 Bps Crr Rbi Monetary Policy Cash Reserve Ratio

1 month ago

RBI Monetary Policy: MPC projects FY25 GDP growth at 6.6%; cuts estimates from 7.2% earlier

Live Mint

RBI Monetary Policy: Reserve Bank of India Governor Shaktikanta Das while announcing a status quo on the repo rate and policy stance on Friday, December 6, expects the FY25 GDP Growth to be at 6.6% The RBI Governor after the Monetary Policy Committee meeting, while pegged GDP growth rate to be at 6.6% for FY25, it expects ongoing quarter i.e …

Growth Quarter Mpc Gdp Growth Fy25 Rbi Mpc Rbi Monetary Policy

1 month ago

RBI monetary policy: MPC projects FY25 inflation at 4.8%

Live Mint

RBI Monetary Policy meeting: The Reserve Bank of India revised its inflation projection for 2024–2025 to 4.8% with Q3 at 5.7%, and Q4 at 4.5% The consumer price index inflation for the first quarter of the next financial year 2025-26 is projected at 4.6% and the second quarter at 4%. RBI October Monetary Policy Outcome During the Monetary Policy Committee …

Policy Inflation Monetary Policy Rate Rbi Das Mpc

1 month ago

RBI MPC Dec Meet: Panel Continues To Keep Key Rates Unchanged, Repo Rate At 6.5 Per Cent

ABP News

RBI MPC Dec Meet: The Reserve Bank of India on Friday maintained the status quo on benchmark interest rates. The central bank’s Monetary Policy Committee announced key repo rates at 6.5 per cent, keeping it unchanged yet again. #WATCH | Mumbai | RBI Governor Shaktikanta Das says, "The Standing Deposit Facility rate remains at 6.25% and the Marginal Standing Facility …

Monetary Policy Committee Cent Rbi Facility Governor Dec

1 month ago

RBI Monetary Policy: Inflation remains a concern; FY25 growth estimates trimmed-5 key highlights from RBI MPC outcome

Live Mint

RBI Monetary Policy: Highlighting sticky inflation and its impact on economic growth and consumers, Reserve Bank of India Governor Shaktikanta Das announced a status quo on the repo rate and policy stance on Friday, December 6. The Monetary Policy Committee of the central bank, by a majority of 4:2, decided to keep the repo rate at 6.50 per cent for …

Policy Cent Rate Rbi Gdp Mpc Bps

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Articles for Monetary Policy

Revise India’s inflation gauge but handle the revision with care

Will Trump respect the Fed’s independence?

A new year’s resolution for the Federal Reserve

Debate over excluding food inflation from monetary policy reaches MPC

RBI’s monetary policy panel divided over timing of rate action

Price stability crucial for India’s economic growth, says RBI

Does the Fed even know what it’s trying to do?

US Fed cuts interest rates but cautions for year ahead

Vivek Kaul: RBI’s new governor will have to confront a tricky old trilemma

Why RBI is central to the country’s economy

Major blow for Aussies just before Christmas as Reserve Bank makes interest rate decision

From North Block to Mint Street: Sanjay Malhotra has his task cut out as RBI’s next governor

China eases monetary policy stance, vows more fiscal support

China still has further room for RRR, interest rate cuts

India replaces central bank governor in a surprise move

China's leaders vow more 'relaxed' monetary policy in 2025

Stalled demand, sluggish growth

RBI MPC Dec 2024: Central Bank Slashes CRR By 50 Bps, Here's What It Means

RBI monetary policy decision: Is an RBI rate cut coming after Union Budget 2025? What experts suggest

RBI Policy Outcome: RBI cuts cash reserve ratio by 50 bps to 4%

RBI Monetary Policy: MPC projects FY25 GDP growth at 6.6%; cuts estimates from 7.2% earlier

RBI monetary policy: MPC projects FY25 inflation at 4.8%

RBI MPC Dec Meet: Panel Continues To Keep Key Rates Unchanged, Repo Rate At 6.5 Per Cent

RBI Monetary Policy: Inflation remains a concern; FY25 growth estimates trimmed-5 key highlights from RBI MPC outcome