Articles by Madan Sabnavis
Jun 15, 2018
Fed rate hike: US action will slowdown FPI flow to India; RBI will have to shield rupee as currency might get weakerA weaker rupee would be the next problem to confront for the RBI which will have to intervene in extreme volatile situations to cool the currency
Jun 14, 2018
One year of GST: Integration of unorganised sector is major achievement; govt must ensure transmission of lower taxes to consumersOn inflation, so far there is little evidence to suggest that there has been an upward tendency as food has been kept out of GST, which is a large part of the CPI basket.
Jun 07, 2018
RBI ups repo to 6.25%: MPC takes aggressive stance on inflation; expect two more rate hikes this yearIncreasing the rates based solely on expectations of higher inflation is a strong signal that the central bank will continue to do so in case inflation increases further notwithstanding the targets being less than 5 percent for the year.
May 31, 2018
GDP growth on track this time; numbers suggest the economy is poised for stable expansionIf all elements come together, there would be a good chance of the economy bouncing back to 7.5 percent growth in FY19.
May 21, 2018
Petrol, diesel rates: Narendra Modi govt can no longer ignore a problem it ignited, especially in an election yearPetrol, diesel prices were kept under check before the Karnataka Elections with the reason being that the government wanted the prices to remain unchanged lest they affect voting patterns
May 19, 2018
ToR of 15th Finance Commission: It pays to look beyond the population criterion and work out a performance-based formulaPopulation has been one of the parameters but has become controversial as it has been interpreted as being discriminatory on account of the change in the base year from 1971 to 2011 for calculating allocations.
May 08, 2018
Rupee sinks below Rs 67: Strong dollar, crude to put pressure on currency; RBI might have to intervene to restore sanityThe volatile rupee is, hence, a concern now and this is still not as severe as the crisis in 2013, when crude spiked to the $140-150 levels
Apr 18, 2018
Cash crunch: Hype surrounding digital payments blurred our view; hard currency continues to drive IndiaGoing beyond demand and supply factors, the reason for the cash crunch could be a simple case of the RBI not printing enough notes to keep pace with demand.
Apr 13, 2018
Economy beginning to look good with IIP at 7%, CPI inflation at 5-month low, but not time to lower guard yetSeveral indicators for the economy appear to be showing signs of improvement which gives reason to be sanguine about next year.
Apr 05, 2018
RBI credit policy: Some misses on commentary, but MPC's decision on key rates was on expected linesThe next RBI policy meeting too could be benign. The progress of the monsoon and a clearer picture on oil will be the clues for both inflation and policy.