Using food inflation in rate-setting flawed; RBI should cut rates for pushing growth, says Piyush Goyal
India's Commerce Minister Piyush Goyal urged the Reserve Bank of India to cut interest rates to further boost economic growth, arguing that factoring food inflation in rate decisions is a flawed theory. RBI Governor Shaktikanta Das declined to comment on the suggestion, stating the rate-setting panel will convene in December. Key Points
Economic TimesRetail inflation at a 14-month high, rises to 6.21% in October
The inflation rate currently stands at 6.68% in rural areas, surpassing the urban inflation rate, which is recorded at 5.62%. Key Points
India TodayCPI inflation is likely to breach 6% in October: UBI report
The continued spurt in food prices and fading of the high base effect likely led to a spike in October retail inflation figures. According to a report by the Union Bank of India, retail inflation based on the Consumer Price Index is seen jumping to 6.15 per cent, breaching RBI's 6 per cent tolerance band. Key Points
Economic TimesRBI rate cut on cards? The inflation 'horse' is still a concern for Shaktikanta Das
RBI Governor Shaktikanta Das cautioned against interpreting the recent shift to a neutral monetary policy stance as a signal for imminent rate cuts. Despite speculation, Das emphasized that reducing interest rates now would be risky given the significant upside risks to inflation. Key Points
Economic TimesRBI's policy-setting body keeps rates unchanged for 10th straight time, changes stance to 'neutral'
Change in stance signals possibility of rate cuts, potentially as early as December, depending on inflation trends & global economy. Growth projection for FY 2024-25 retained at 7.2%. Key Points
ThePrint
RBI sets tone for potential rate cut
Retains repo rate at 6.5 per cent | GDP projected to grow at 7.2 per cent. Key Points
The TribuneWhy did the RBI shift to neutral? The predictions for the future
The Reserve Bank of India's Monetary Policy Committee has kept the repo rate unchanged at 6.5% but shifted to a neutral stance. This change allows flexibility in tackling inflation while supporting growth. Economists suggest a potential rate cut in the future if inflation risks subside and growth remains resilient, with December 2024 being a likely timeline. Key Points
Economic TimesGhodey Pe Sawaar: RBI is in a long-term war
RBI inflation horse: India's central bank has shifted its stance to neutral, balancing inflation and growth. Governor Shaktikanta Das emphasized vigilance due to ongoing global risks. Despite some easing, inflation remains a significant challenge, influenced by geopolitical tensions and high food prices. The RBI remains focused on maintaining its targets. Key Points
Economic TimesOne Last Time: Is RBI MPC setting the stage for rate cuts soon?
RBI MPC October Meeting: The Reserve Bank of India shifts to a neutral stance while maintaining the repo rate at 6.5%. Experts anticipate a possible rate cut in December. The focus remains on controlling inflation and supporting growth amidst resilient economic conditions. Key decisions also include updates on GDP, inflation, and financial regulations. Key Points
Economic TimesRBI unlikely to cut rate or change status in October 9 monetary policy: BoB Report
The Reserve Bank of India is likely to keep policy rates unchanged in October. Despite recent drops in inflation, the central bank awaits more clarity on inflation trends before making cuts. Economic indicators are mixed, but growth remains strong. A rate cut might be possible in December if inflation shows durable moderation. Key Points
Economic Times
RBI expected to start rate cut cycle from December this year: UBS
The Reserve Bank of India's Monetary Policy Committee (MPC) is anticipated to begin easing interest rates in December 2024, according to a UBS report. This expectation arises from an improving domestic inflation outlook, projected to be 30 basis points lower than the RBI's forecast of 4.5% for FY25, along with a global trend of monetary easing. Key Points
Economic TimesMPC should pay more heed to core inflation, says outgoing member Ashima Goyal
Ashima Goyal, a member of India's Monetary Policy Committee, emphasized the importance of focusing on core inflation for long-term household inflation expectations. She suggested that the committee should provide guidance on liquidity conditions. Goyal highlighted that recent interventions in India's monetary policy have helped lower inflation and stressed the need for supply-side action to ensure non-inflationary growth. Key Points
Economic TimesCore US inflation eases a fourth month, sealing Fed rate cut
International Business News: In July, the core consumer price index in the US rose 3.2% from a year ago, marking a four-month decline in underlying inflation. Monthly, it increase Key Points
Times Of IndiaUS inflation still 'uncomfortably' high: Fed official
US inflation remains uncomfortably above the Federal Reserve's target despite the progress it has made in recent months, a senior bank official said Saturday. Despite upside risks, Bowman said she still expects inflation to ease in the coming months, but warned policymakers to remain patient and avoid undermining continued progress on lowering inflation by overreacting to a single data point. Key Points
Economic TimesUneven rainfall may flare up food inflation: Experts
After a slow start in June, monsoons have accelerated in India, resulting in above-normal cumulative rainfall for July. Economists warn that this variability may contribute to rising food inflation, which reached a six-month high of 9.36% in June. Key Points
Economic Times
RBI Bulletin: Hike in retail inflation due to food prices has halted overall disinflation process
Food inflation based on the consumer food price index (CFPI) rose 9.36% year-on-year in June, compared to an 8.69% rise in May and an 8.70% in April. Key Points
Business TodayShift in MPC's policy stance can be looked at before 4% inflation, says RBI's state of economy report
The Reserve Bank of India (RBI) may shift its monetary stance from withdrawal of accommodation to neutral before reaching its inflation target, despite persistent food inflation. The report, prepared by deputy governor Michael Debabrata Patra and central bank's economic researchers, suggests that food price shocks over the past year are dominating headline inflation and households' expectations, undermining the gains of lowering core and fuel inflation through monetary policy and supply management. Key Points
Economic TimesRetail inflation reignites in June as food prices surge
Prices of food, which account for nearly half of the retail inflation, rose 9.36% from last year in June compared to an 8.69% rise in May. Key Points
ThePrintRetail inflation at 4-month high, rises to 5.08% in June
Food inflation rose to 9.55% in June, up from 8.69% in May and 4.55% in June 2023. Rural inflation climbed to 5.67% in June from 5.34% in May and 4.78% in June 2023. Key Points
India TodayAmid inflation concerns, RBI likely to leave interest rate unchanged
Reserve Bank Governor Shaktikanta Das will announce the next set of monetary policy on Friday morning amid expectations of a status quo on the benchmark... Key Points
The Tribune India
RBI unlikely to cut interest rate on June 7, say experts
The Reserve Bank of India is unlikely to cut the benchmark interest rate in its upcoming monetary policy review amid inflation challenges and improving economic growth. Scheduled for June 5-7, the Monetary Policy Committee (MPC) is expected to maintain the current 6.5% repo rate. Experts cite steady economic conditions and ongoing inflation concerns as reasons for maintaining the status quo Key Points
Economic TimesRBI pegs FY25 growth at 7%, highlights cross-sector positives that will boost the economy
In its annual report, RBI also estimated retail inflation to average at 4.5% in FY25, higher than its target of 4%. It added that climate shocks add uncertainty to inflation outlook. Key Points
ThePrintYen hits 4-week low, euro dips after German inflation data
By Alun John and Ankur Banerjee LONDON/SINGAPORE (Reuters) -The Japanese yen drifted to its softest level in four weeks against the dollar on Wednesday on the back of rising U.S. yields, as placid Key Points
ThePrintIncome Tax department notifies cost inflation index for current fiscal
The Income Tax Department has notified the Cost inflation Index (CII) for the fiscal year 2024-25, set at 363, to calculate long-term capital gains from the sale of assets. The CII reflects economic inflation, with an increase of 15 points from the previous year, aiding taxpayers in adjusting gains for inflation and reducing tax liabilities. Key Points
Economic TimesIndia's retail inflation eases marginally in April; here's what experts have to say
New Delhi [India], May 14 (ANI): India’s retail inflation eased to 4.83 per cent in April, down from 4.85 per cent in March. However, consumer food price inflation surged to 8.70 per cent from 8.52 per cent last month, according to data from the Ministry of Statistics and Programme Implementation released Monday. The retail inflation […] Key Points
ThePrint"There isn't any alternative to USD as reserve currency": Warren Buffett
Washington [US], May 5 (ANI): Legendary investor and American businessman Warren Buffett addressed concerns about the US debt and inflation during Berkshire Hathaway’s annual meeting. He emphasized the resilience of the dollar as a reserve currency and expressed confidence in the US economy despite the national debt. Show Full Article “It won’t be the quantity […] Key Points
ThePrintIndia to grow 6.8% in FY25, public investment to be the driver, says IMF
The IMF recently revised Indias growth forecast upward to 6.8% from 6.5% projected in its January forecast. The fund also revised Indias FY24 growth outlook upward to 7.8%, higher than the governments projection of 7.6%. “India and the Philippines have been the source of repeated positive growth surprises, supported by resilient domestic demand,” IMF said in its report. Key Points
Economic TimesOil falls more than $1/bbl on Middle East peace talks, US rate cut doubts
By Laila Kearney (Reuters) -Oil prices lost more than $1 a barrel on Monday as Israel ceasefire talks in Cairo tempered fears of a wider Middle East conflict, while U.S. inflation data dimmed the Key Points
ThePrintDas emphasises price stability amid strong GDP projections
The success in controlling inflation has to be preserved and taken forward to achieve a 4 per cent inflation target on a durable basis, RBI... Key Points
The Tribune IndiaUK inflation falls to lowest level since late 2021 as food prices ease further
British consumer price inflation in March moderated to 3.2% annually, slightly below expectations of 3.1%. Core inflation, excluding key items, decreased to 4.2%. Services inflation dipped to 6.0%. The Office for National Statistics reported these figures, with the Bank of England closely monitoring the situation. Economists' forecasts were not fully met. Key Points
Economic TimesIndia's Retail inflation dips to 4.85 per cent in March
New Delhi [India], April 12 (ANI): Consumer Price Index (CPI) for the month of March showed a notable cooling, registering at 4.85 per cent. This marks a slight decline from the previous month’s figure of 5.09 per cent, indicating a moderation in inflationary pressures across various sectors of the economy. Show Full Article The latest […] Key Points
ThePrintIndian stock indices hit fresh high; eyes now on inflation data, Q4 earnings
New Delhi [India], April 8 (ANI): Indian stock indices started Monday’s trade in the green and hit their fresh highs, extending positive momentum from gains it recorded in the first week of the new financial year that started on April 1. At 9.23 am, Sensex was at 74,487.41 points, up 239.19 points or 0.32 per […] Key Points
ThePrintRBI flags inflation risks, keeps repo rate unchanged at 6.5 per cent
The rate increase cycle was paused in April last year after six consecutive rate hikes. The Reserve Bank of India on Friday decided to keep policy rate unchanged... Key Points
The Tribune India'Elephant is out for a walk...': What RBI governor Shaktikanta Das said on inflation
At the April policy decision, the RBI kept the inflation projection at 4.5%, assuming a normal monsoon, which is same from its February projection both for growth and inflation. Key Points
Business TodayRBI leaves inflation projection for FY25 unchanged at 4.5% as 'elephant' out for a walk
Reserve Bank of India Monetary Policy: The RBI today left inflation estimate for fiscal 2025 unchanged at 4.5% amid rising concerns over soaring crude oil prices and supply chain disruptions due to the Red Sea crisis. Food inflation remains a concern after it climbed to 8.7% in February, driving overall inflation, while Brent and WTI futures have now surged on geopolitical tensions. Key Points
Economic Times
Elephant returning to forest : RBI Governor Das hints at inflation reaching 4 per cent target
RBI MPC Meeting: The governor hinted at inflation nearing the 4 per cent target, stating, The elephant in the room was CPI inflation. The elephant has now gone out for a walk and appears to be returning to the forest. These remarks were made during the announcement of decisions from the first bimonthly Monetary Policy Committee (MPC) meeting of FY25. Key Points
Economic TimesWhy is rupee at an all-time low when all economic indicators are favourable? Indranil Sengupta explains
Indranil Sengupta discusses the impact of a strengthening dollar on the rupee, emphasizing the importance of building forex reserves. He forecasts rate cuts, strong growth, and a rally in bond yields by mid-2025. He also says that inflation is yesterday's story. We are moving from El Nino to La Nina. So, food inflation will come down. Key Points
Economic TimesThe anatomy of a post-crisis monetary policy, explained
After a crisis like the pandemic, looking only at inflation and growth does little to shape effective monetary policy, and it’s essential to go beyond. A comparison with the early 2010s holds some clues on what’s working better this time. Key Points
mintRBI MPC: SBI says rate cuts might take place only in Q3 FY25
RBI MPC meeting: The SBI report added that inflation is expected to decline till July, but increase after that to reach a peak of 5.4 per cent in September, followed by a deceleration. Key Points
Business Todayinflation victory is proving elusive, challenging central banks and markets
In the U.S. and Europe, underlying inflation has stopped falling or edged higher recently, weakening the case for rate cuts. Key Points
mint
ET Poll: RBI likely to maintain status quo on key rates
The Reserve Bank of India (RBI) is expected to maintain interest rates unchanged in its upcoming meeting, according to an ET poll of 14 respondents. This would mark the seventh consecutive time the repo rate, currently at 6.50%, remains steady. Economists suggest that the RBI may wait until August 2024 for any rate changes, citing the need for clarity on monsoon outcomes, sustained economic growth, and US Federal Reserve decisions. Key Points
Economic TimesRBI may hold rate yet again to focus on inflation management, say experts
RBI expected to maintain key rate in April amid strong GDP growth. MPC to consider global cues. Forecast suggests rate cut unlikely before August 2024, emphasizing inflation targeting. Key Points
Economic Times'We don't need to be in a hurry to cut': Jerome Powell says Fed will wait for inflation to 'come in line'
Fresh inflation data released earlier is “pretty much in line with our expectations,” he said. But Powell reiterated it won’t be appropriate to lower rates until officials are confident inflation is on track toward their 2% goal. Key Points
Business TodayJerome Powell says Fed wants to see ''more good inflation readings'' before it can cut rates
The combination of sturdy growth and decelerating inflation has raised hopes that the Fed is engineering a soft landing'' - taming inflation without causing a recession. The central bank has signalled that it expects to reverse policy and cut rates three times this year. Key Points
Economic TimesIndian economy keeps its shine, with some red flags
India’s strong footing, especially at a time when recession bells are ringing in Europe, may prove useful to the Narendra Modi government ahead of elections. The country remains on top in Mint’s emerging markets tracker. Key Points
mint
Services inflation to stay muted for now
India's services inflation expected to remain subdued, with a potential increase later. The industry may experience a surge in various costs, reflecting the country's complex economic recovery and differing opinions on future trends. Key Points
Economic TimesFood price pressures an obstacle in swifter fall in retail inflation target of 4%: RBI
The Wholesale Food Index (WPI) picked up from 3.8% in January to 4.1% in February, while primary articles’ prices rose 4.5% as compared to 3.84% in January. On a month-on-month basis, the WPI was 0.07% higher, with primary articles rising 0.22% and the Food Index up 0.17%. Key Points
Business TodayUS Fed meet begins today: Why will chief Powell & team choose to stay put?
The US Federal Reserve is expected to keep interest rates stable amid rising inflation. Market anticipates potential rate cuts in 2024 based on economic conditions and dot plots forecasts. Key Points
Economic TimesIndia's wholesale inflation eases to 0.2% in February
New Delhi [India], March 14 (ANI): Wholesale inflation in India, based on the Wholesale Price Index, remained in positive territory for the fourth month after remaining in the negative zone for the seventh straight month until October. The annual rate of inflation based on all India Wholesale Price Index (WPI) numbers is 0.20 per cent […] Key Points
ThePrintWholesale inflation eases to a four-month low of 0.2% in February
Wholesale inflation dropped to 0.2% in February, marking a four-month low from the previous month's 0.27%, as per recent data. Despite a rise in food prices, overall input cost pressures remained low. Key Points
Economic Times
India's WPI inflation eases to four-month low of 0.20 per cent in February
The sequential WPI rate for February grew 0.07 per cent against a contraction of (-)0.33 per cent in the month before. Positive rate of inflation in February, 2024 is primarily due to increase in prices of food articles, crude petroleum & natural gas, electricity, machinery & equipment and motor vehicles, trailers & semi-trailers etc, the release said. Key Points
Economic TimesDollar steadies as Fed June rate cut still in sight
By Joice Alves and Brigid Riley LONDON/TOKYO (Reuters) -The U.S. dollar index held steady on Wednesday as traders shrugged off hotter-than-expected U.S. inflation and still expected a Federal Reserve Key Points
ThePrintIndia's retail inflation almost unchanged in Feb; here's what experts say
India's retail inflation eased to 5.09% in February, remaining above the ideal 4% scenario. The RBI has maintained the repo rate for the sixth straight occasion in its fight against inflation. Maharashtra and Uttar Pradesh have the largest weighted contribution to the current reading of CPI. Key Points
Economic Timesinflation stays flat at 5.09% in February against 5.1% in January
India's CPI inflation remained stable at 5.1% in February, with food inflation rising slightly but offset by a slowdown in core and fuel inflation. | Latest News India Key Points
Hindustan TimesFood price dynamics driving inflation currently, will determine domestic inflation in future: SBI Ecowrap
The SBI Ecowrap report noted that protein items (meat, egg) inflation increased exorbitantly (in the range of 400-500 bps) in February month as compared to January. Vegetable prices also increased m-o-m by 300 bps to 30.2%. Key Points
Business Today
CPI inflation in February: 12 of 22 states see higher retail inflation than all India average
Odisha had the highest retail inflation rate at 7.55% in February while Delhi had the lowest at 2.42% Key Points
Business TodayIndia's retail inflation eases to 5.09%, IIP grows 3.8% in January
At this rate, it is still above the RBI's medium-term target of 4 percent. The central bank is keen to bring it down to the target on a durable basis, with Governor Shaktikanta Das saying in his statement in the minutes of the February 6-8 meeting of the Monetary Policy Committee (MPC) that the "'last mile' of disinflation…can be sticky". Key Points
Business TodayMorning Bid: Stocks drift lower again, India CPI on deck
By Jamie McGeever (Reuters) - A look at the day ahead in Asian markets. With global markets gently easing back from recent highs ahead of U.S. inflation data on Tuesday, Asian markets are unlikely to Key Points
ThePrintAsia shares subdued, yen firm as BOJ ponders positive rates
By Wayne Cole SYDNEY (Reuters) -Asian share markets sputtered on Monday while the dollar looked vulnerable ahead of a reading on U.S. inflation that could hasten, or delay, the start of global rate Key Points
ThePrintFebruary retail inflation seen at 5.08%: Mint poll
Among economists polled by Mint, projections ranged from 4.90% to 5.50%, with only three of them expecting inflation to rise from the previous month. Key Points
mint
India Feb consumer price inflation forecast to edge lower: Reuters poll
Inflation was not expected to return to the RBI's mid-point target at least until 2026, according to a recent Reuters survey on the longer-range outlook, as upside risks to food inflation remain. That recent poll also found the central bank is expected to keep its key policy rate unchanged at 6.50% at least until mid-year given that upside risks to inflation remain. The government emphasised its desire to narrow the fiscal deficit...it will cut subsidies by 7.8% across food, fuel and fertilisers in April, said Aditi Raman, associate economist at Moody's Analytics. Key Points
Economic TimesCore inflation to stay around 3% till Q1 FY25: Economists
Inflation in goods and services other than fuel and food is expected to remain low at around 3% due to weak rural demand. Despite a strong economy, depressed wage growth and muted private consumption have contributed to declining core inflation. Key Points
Economic TimesStocks climb, yields fall as data supports view of rate cuts
By Caroline Valetkevitch NEW YORK (Reuters) - Global stock indexes rose and Treasury yields fell on Friday as weaker-than-expected U.S. data underscored investor expectations of Federal Reserve Key Points
ThePrintPakistan inflation slows to 23.1% yr/yr in Feb, lowest since mid-2022
International Business News: Pakistan's consumer price index for February increased by 23.1% YoY, the slowest since June 2022. inflation reached an all-time high of 38% in May 202 Key Points
Times Of IndiaStocks hold at record highs as traders bet on rate cuts
By Naomi Rovnick and Stella Qiu LONDON SYDNEY (Reuters) -Global shares drifted around record highs on Friday after U.S. and euro zone inflation data and weak global factory surveys kept hopes of Key Points
ThePrintJapan, Australia shares hit record high on Wall Street bounce
By Stella Qiu SYDNEY (Reuters) -Japanese and Australian shares hit fresh record highs on Friday as a key U.S. inflation reading came in as expected, a relief for investors that had looked for a June Key Points
ThePrintDelhi's inflation rate at 2.81%, below national rate of 5.65% in 2023: AAP minister Atishi
Delhi recorded an inflation rate of 2.81% in Jan-Dec 2023, while the national inflation rate stood at 5.65% during the same period. Key Points
mintEconomy has done well despite multiple external shocks: MPC's Goyal
RBI's Monetary Policy Committee (MPC) member, Ashima Goyal, praised India's economic resilience despite external shocks. She emphasized the need for counter-cyclical macroeconomic policies due to ongoing geopolitical fragility. Goyal warned against excessive spending, urging a cautious fiscal approach. Regarding inflation, she supported gradual interest rate cuts to maintain real rates necessary for acceptable inflation and growth. Key Points
Economic TimesDollar steady as traders weigh Fed rate cut bets; yen shaky at 150/$
International Business News: The dollar steadied as U.S. inflation eased, raising hopes of Fed rate cuts. Yen approached 150 per dollar. Bitcoin paused near a two-year high. Euro Key Points
Times Of IndiaIndonesia February inflation rate beats view on soaring rice, chilli prices
Indonesia's February inflation of 2.75% exceeded expectations on surging food prices. Bank Indonesia (BI) expects interest rate cuts only in H2 2024. Key Points
Times Of India