Page 19 - Inflation

RBI policy of not allowing crypto is a good approach: Amiyatosh Purnanandam

He said that the government needs to incentivize good long term risk taking by banks to push private investments

Corporate earnings, inflation data key factors to drive markets: Analysts

Quarterly earnings of corporates, trading activity of foreign investors and inflation data are the key factors that are expected to drive the momentum in the equity markets this week, analysts said. Moreover, markets would also focus on movement in crude oil prices amid geopolitical tensions, experts added. "In the coming week, the market's direction will largely hinge on corporate earnings, with major companies like Reliance Industries, Infosys, HDFC Bank, Axis Bank, and HCL Technologies set to release their results, among others," Ajit Mishra, SVP, Research, Religare Broking Ltd, said. From the macroeconomic front, investors will keep an eye on the CPI (consumer price index-based inflation) and WPI (wholesale price index-based) inflation data for September, scheduled to be announced on Monday. Investors will also closely track updates on geopolitical tensions, particularly their impact on crude oil prices, and foreign fund flows. Key domestic economic data, including CPI and WPI

RBI keeps rate unchanged: What does this mean for borrowers, savers, and investors?

The Reserve Bank of India (RBI) has once again kept the repo rate unchanged at 6.5% during its October 9 meeting. This marks the tenth consecutive time it has held the rate steady.

Retail inflation in September likely overshot RBI's 4% target: Poll

Food items, especially vegetables and other perishables, which make up a significant share of overall household spending in the country, saw an uptick in prices

RBI's shift to neutral stance suggests rate cut likely in December

Uncertainty remains elevated on a number of fronts, not least on the path for food inflation and external tensions

Greater confidence that inflation moderating in Q3...but risks remain: Das

We have to be very careful because there is every chance that inflation will simply bolt again, says Das

Wait and watch: Geopolitical threats to inflation outcomes have increased

Crises in West Asia and consequent volatility in prices of petrochemicals have historically led to inflation spikes and broader economic instability in India

RBI monetary policy preview: Expecting more nimble and prudent guidance

CPI-based inflation is expected to broadly align near the RBI's projection of 4.5% in 2024-25, despite perishable food price shock due to repeated weather aberrations

World Food Price Index registers biggest increase since March 2022

An index of food-commodity prices created by the United Nations' Food and Agriculture Organization rose to the highest level since August last year, according to data released

RBI faces a delicate balancing act ahead of key monetary policy meet

It will be important for monetary policy not to inadvertently accentuate asset price inflation, financial exuberance and the associated financial stability risks that come with it

Has there been a slowdown in money supply after inflation targeting?

Apprehensions have been expressed in public domain of a slowdown in money supply on the back of an inadequate reserve money expansion and this could play a role in growth slowdown

Retail inflation for industrial workers inches up at 2.44% in August

Retail inflation for industrial workers inched up marginally to 2.44 per cent in August against 2.15 per cent in July this year. The All-India CPI-IW (Consumer Price Index-Industrial Workers) for August 2024 decreased by 0.1 points and stood at 142.6 points, a labour ministry statement said. According to the statement, the CPI-IW was 142.7 in July this year. "Year-on-year inflation for the month of August 2024 stood at 2.44 per cent as compared to 6.91 per cent in August 2023," it said. Labour Bureau, an attached office of the Ministry of Labour & Employment, has been compiling the Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country.

Inflation in Europe falls below 2%, paves way for faster interest rate cuts

Inflation in the 20 countries that use the euro fell to 1.8 per cent in September, below the European Central Bank's target of 2 per cent for the first time in more than three years as falling energy prices give consumers relief from a burst of inflation that at one point reached into double digits. Tuesday's official figure coupled with an anemic growth outlook could pave the way for faster interest rate cuts from the ECB, which has already trimmed rates twice. Inflation fell from 2.2 per cent in August, according to European Union statistics agency Eurostat. The last time inflation hit the ECB's 2 per cent goal was in June, 2021 when it was 1.9 per cent. Economists have started to consider the possibility of a rate cut at the bank's October 17 meeting. A few weeks ago, the expectations were that the central bank would wait until December before lowering borrowing costs again for consumers and businesses. The bank must juggle the need to make sure inflation is under control, which

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

Fed drives global push to cut rates despite uncertainties over 2025

Whatever happens, a sustained period of central bank activism, in contrast to the recent hiatus of higher-for-longer rates, is likely to take hold

Time for private investment is now; delays risk economic competitiveness

Despite softening inflation, the degrees of freedom for the central bank to reduce interest rates might decrease, due to higher government borrowing to keep pump-priming the economy

WPI inflation drops to 4-month low of 1.31% in Aug on lower prices

Food price comes in at 3.11%, compared to 3.45% in July, according to government data

Rate cut hinges on inflation trajectory: RBI Governor Shaktikanta Das

Rupee strength driven by strong fundamentals, not because of artificial intervention

Have distance to cover on inflation, can't look other way: RBI Governor

Central bank in no rush to cut rates as projections say inflation is moderating, says Shaktikanta Das

Pakistan central bank's MPC cuts key policy rates by 200 bps to 17.5%

Pakistan's Central bank on Thursday cut its key policy rate by 200 basis points to 17.5 per cent from 19.5 per cent bowing to demands for a major rate cut. The State Bank in a statement said that the Monetary Policy Committee (MPC) decided to reduce the policy rate by 200 basis points (bps) to 17.5 per cent in its meeting on Thursday. Various factors impacting the inflation outlook were taken into consideration while reaching this decision, it said. Inflation in August was at 9.6 per cent, resulting in a positive real interest rate of 10 per cent. Financial experts generally anticipated a reduction of 150 bps with some forecasting a cut of up to 200 bps. However, industry leaders advocated for a deep 500 bps cut to spur economic growth. The Monetary Policy Committee (MPC) assessed the real interest rate to still be adequately positive to bring inflation down to the medium-term target of 5 to 7 per cent and help ensure macroeconomic stability, the statement read. The MPC said glob