Best of BS Opinion: Rising inflation risk, Centre's GTR in 2020-21 & more

Here are the best of Business Standard's opinion pieces for Tuesday

The latest inflation data has put the Monetary Policy Committee of the Reserve Bank of India in a spot. The consumer price index-based inflation rate increased to a six-month high of 6.3 per cent in May, surpassing the upper end of the central bank’s tolerance band. It now remains to be seen how the RBI will persuade markets about price stability while supporting growth. One way out would be to start reducing liquidity and allowing yields to move up. Ignoring inflation risk for long could increase longer-term economic costs, argues our lead editorial
 

Indirect taxes are now higher than direct taxes. But cutting indirect tax rates to address this will amount to barking up the wrong tree, writes A K Bhattacharya

Much like Sebi’s Categorisation and Rationalisation of Mutual Fund Schemes changed the landscape for mutual funds in India, EU’s Sustainable Finance and Disclosure Regulations is set to change the funds management industry in Europe, writes Amit Tandon

 

Quote

“Almost 85 per cent decline has been seen in daily cases since the highest reported peak. We are witnessing this situation after 75 days, thus indicating an overall decline in infection rate.”

Lav Agarwal, Joint Secretary, Health Ministry