Business Standard

Monetary policy needs recalibration due to domestic reasons, not the Fed

Early reports suggest softer consumer demand at the beginning of the festive season, with discounts and incentives offered by automakers and online platforms to boost sales and clear inventory

inflation graph
Premium

Sonal Varma

Listen to This Article

Most investors believe emerging market central banks must follow the Fed. If they don’t, interest rate differentials can lead to significant capital flows and currency fluctuations.

Indeed, the Fed’s pivot to easing in September has opened the policy floodgates. In Asia, the Bangko Sentral ng Pilipinas cut the policy rate by 25 basis points (bps), and the reserve requirement ratio (RRR) by 250 bps, Bank Indonesia surprised with a 25-bp rate cut, and the People’s Bank of China cut the RRR by 50 bps, and the seven-day open market operation reverse repo rate by 20 bps. Is
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in