Monetary policy: Currency, credit, credibility gain focus

The RBI’s monetary policy mentioned rising inflation, but the underlying iceberg called ‘currency’ is stealing the slow: इस घटनाक्रम पर आधिकारिक अपडेट दर्ज किया गया है। The RBI has raised the repo rate by 25 basis points (bps), as widely expected, and, to the surprise of some, changed its stance by guiding that further hikes are down the road. While much of the policy spoke about rising inflation and the need to counter it amidst a healthy economic growth, there is an underlying iceberg called “currency”, which has been stealing the slow.

बाजार और अर्थव्यवस्था: क्या हुआ बड़ा बदलाव?

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The RBI’s monetary policy mentioned rising inflation, but the underlying iceberg called ‘currency’ is stealing the slow

The RBI has raised the repo rate by 25 basis points (bps), as widely expected, and, to the surprise of some, changed its stance by guiding that further hikes are down the road. While much of the policy spoke about rising inflation and the need to counter it amidst a healthy economic growth, there is an underlying iceberg called “currency”, which has been stealing the slow.

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Yes, inflation pressures are rising and probably getting closer to, or beyond the upper band of the tolerance level of 6 per cent and could stay there for two to three quarters. And, not to forget, inflation expectations are now around 10 per cent up to one year. Yes, a bulk of this is food, led by poor monsoon, and, needless to say, geo-politics but the argument that the central bank cannot control supply-side factors is only up to the point when it is first-order inflation or direct inflation.

When the impact from rising prices starts getting embedded into second order or finished goods and then wages, risking wage price spiral, the central banks have to step in.

प्रमुख वित्तीय आंकड़े और कंपनियों का रुख

• •The RBI’s monetary policy mentioned rising inflation, but the underlying iceberg called ‘currency’ is stealing the slow
• •The RBI has raised the repo rate by 25 basis points (bps), as widely expected, and, to the surprise of some, changed its stance by guiding that further hikes are down the road. While much of the policy spoke about rising inflation and the need to counter it amidst a healthy economic growth, there is an underlying iceberg called “currency”, which has been stealing the slow.
• •Yes, inflation pressures are rising and probably getting closer to, or beyond the upper band of the tolerance level of 6 per cent and could stay there for two to three quarters. And, not to forget, inflation expectations are now around 10 per cent up to one year. Yes, a bulk of this is food, led by poor monsoon, and, needless to say, geo-politics but the argument that the central bank cannot control supply-side factors is only up to the point when it is first-order inflation or direct inflation.
• •When the impact from rising prices starts getting embedded into second order or finished goods and then wages, risking wage price spiral, the central banks have to step in.

ताजा स्थिति व आगे का अपडेट

इस विकास का सीधा प्रभाव संबंधित क्षेत्र और हितधारकों पर देखा जा रहा है। घटनाक्रम पर पैनी नजर बनी हुई है।