Ashima Goyal

Goyal further stated that the rise in non-performing assets (NPAs) in certain areas, such as personal credit, can be managed through targeted prudential regulations

Goyal, who voted for rate cut in both June and August review meetings, says that she does not see any broad-based rise in core inflation

Red-flags top-up loans, credit card spends

Repo rate cannot affect food prices. So, keeping it above equilibrium will not lead to faster disinflation. A positive real repo rate is adequate to anchor inflation expectations, says Ashima Goyal

Unemployment is highest for younger age brackets, but it is 'transient' as Indian youths spend more time acquiring skills and trying hands at entrepreneurship, RBI Monetary Policy Committee (MPC) member Ashima Goyal has said. There is steady improvement in job creation in the country with the strong growth recovery, Goyal added. "Youth unemployment is higher for the more qualified, but they also earn higher wages. "Therefore, youths are spending more time acquiring skills and in job search," she told PTI. Goyal was responding to a question on the International Labour Organization (ILO) report -- which showed that in 2022, the share of unemployed youths in India's total unemployed population was nearly 83 per cent. "Unemployment is highest for younger age brackets but it is transient...While they wait, they do informal work or take risks at entrepreneurship, where a few do very well," she added. Goyal pointed out that the ILO report also shows that youth unemployment has been fal

Earlier this month, the MPC kept the lending rate steady at 6.5 per cent for the seventh meeting in a row after having raised it by a total of 250 basis points between May 2022 and February 2023

'Withdrawal' is now well understood to imply that the repo rate remains disinflationary and is aimed at bringing inflation towards the target, Goyal said

India's macro-fundamentals strengthened even though it faced severe external shocks since 2020, Reserve Bank Monetary Policy Committee (MPC) member Ashima Goyal said on Monday. The country's economic diversity, adequate buffers, and feasible reforms have enabled policies to be countercyclical, she told PTI in an interview. With more and more firms and consumers internalising the inflation target, the economy is likely to approach the Reserve Bank of India's (RBI's) inflation target of 4 per cent this year. "There have been severe external shocks (Russia-Ukraine war, Israel-Hamas war, oil prices, Houthi attacks) since 2020. But despite these, Indian macro-fundamentals have strengthened in this period," she said. The economist said the rupee has been relatively stable due to these factors. "Economic diversity, adequate buffers, and feasible reforms... have enabled policies to be countercyclical. We have the capability to implement countercyclical policy and smooth external shocks,"

Ashima Goyal tells Manojit Saha in an email interview that the inflation rate does not necessarily have to fall to 4%, but it is essential to be confident that it will stay below 5%

For food price shocks supply-side measures are more effective. The government has long experience with intervention in the food economy, Goyal opines

'The real repo rate is still in an acceptable band around one'

In a Q&A, she explains why the rate setting panel's current focus should be to bring down inflation

Inflation is expected to come down over the year, RBI Monetary Policy Committee (MPC) member Ashima Goyal said on Sunday, asserting that the government's supply-side action coordinated with a flexible inflation-targeting regime has kept the rate of price rise lower than that in other countries. Goyal said that India has successfully dealt with 'pluri-shocks' over the past three years, showing considerable resilience. "Inflation rates are expected to come down over the year. "Government supply-side action coordinated with a flexible inflation targeting regime has kept Indian inflation rates lower than other countries and our own past averages even in this period of major adverse external supply shocks," she told PTI in a telephonic interview. She was asked whether high inflation become the norm in India. "Since nominal policy rates rise with inflation to maintain an expected real positive rate under inflation targeting this prevents demand over-heating and anchors inflation ...

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Continuing to raise nominal repo rates until core inflation falls could imply an overshooting or excess tightening of real rates, says the MPC member in an interview with Business Standard

"You don't need to keep on raising nominal rates as long as inflation does not come down because then you will definitely overshoot in terms of real rates," Goyal said

In a Q&A, she says the majority opinion is that the country has handled the turbulence well and can do so again, though the probability is low in the immediate future

Governor Das said due to persistent core inflation, there is no room for complacency and the battle against inflation is not over

Core inflation is calculated by largely stripping away the volatile components of food and fuel. Goyal was referring to certain products that have linkages with oil prices

RBI Monetary Policy Committee (MPC) member Ashima Goyal on Wednesday said that the efforts of the Reserve Bank to contain price rise by repeatedly increasing interest rates will help in containing inflation, which is likely to fall below 6 per cent next year. Goyal further said that the policy rate hikes have largely reversed pandemic-time cuts but the real rate remains low enough not to hurt the growth recovery. "With a lag of two-three quarters, higher real rates will reduce demand in the economy. "International commodity prices are softening with the global slowdown and supply chain bottlenecks have reduced," she told PTI in a telephonic interview. In order to control rising inflation, the RBI on September 30, raised the short-term lending rate for the third consecutive time by 50 bps to take the repo rate to 5.9 per cent. Since May it has cumulatively increased the key interest rate by 190 basis points. "The Indian government is also taking action to reduce supply-side inflati