Rate Cuts
Recent Highlights
All Stories for Rate Cuts
Inflation numbers well on track, but what Budget offers to revive industrial growth this year will be interesting to watch
Madan •Core inflation is the serious part that can be affected by monetary policy action and hence the direction becomes critical.
RBI monetary policy: Changes in rates may not spur investment; govt needs to ascertain causes of stagnation
Madan •Further, fuel inflation has been increasing and the assumption made by the RBI here is that oil prices are unlikely to increase in the next couple of months.
Next govt may rely on RBI rate cuts to spur growth; revenue unlikely to meet target this year, borrowings to rise
•While the RBI is likely to be open to more policy easing, provided inflation does not surge, their impact on economic activity may be limited, given debts burdening India’s state banking sector.
Retail inflation, IIP growth bring good news for govt, but there may not be immediate rate cuts
Madan •The lower inflation rate is even below what the RBI had projected and even today it looks like that the rate will not cross 3 percent this year.
IIP at 11-month high of 8.1%, CPI drops to 2.33%: Twin numbers signal good news for economy
Madan •While the inflation forecasts have been coming down which gives an indication that they expect price increases to moderate, there is skepticism on core CPI inflation.
RBI policy: Key interest rates unchanged; inflation, growth projections cut
•Among the reasons for the bank's caution were sticky core inflation, and higher government spending if Prime Minister Narendra Modi heeds farmers' calls to forgive their debts
Hardening inflation, Q3 GDP numbers show rate panel's stance in February was right
Dinesh Unnikrishnan123 •The Q3 initial GDP estimates have come in favour of its policy stance, but when the final figures will come later and the widely expected impact on the informal sector, which constitutes 40-45 percent to GDP, gets reflected in the numbers, it is quite possible that we will see a drastically different growth picture.
Raghuram Rajan’s pitch for RBI autonomy: Three reasons why it is crucial in the current context
Dinesh Unnikrishnan123 •In his three-year term at RBI that began on 4 September, 2013 Rajan has mostly sought to play down the differences between the central bank and the government or on RBI’s autonomy, suggesting there is a healthy relation between the two establishments.
Raghuram Rajan defends rate moves, says focus was inflation
•Rajan said he would never abandon inflation control to focus on growth, but admitted there is indeed a short run trade-off between inflation and growth.
May CPI at 21-month high: Even Raghuram Rajan will be praying to the rain gods
Dinesh Unnikrishnan123 •The CPI food inflation jumped to 7.55 percent from 6.4 percent in the preceding month, while the vegetable inflation shot up to 10.77 percent from 4.98 percent in the period