Page 16 - Monetary Policy

CEOs expect better job creation despite monetary tightening in H1FY23

A majority of CEOs in the poll anticipate improved job creation prospects in their companies in the first half of FY23, even as expectations of monetary tightening are pervasive

Don't think today's situation calls for negative real rates: Jayanth Varma

Either inflation has to come down on its own or we will have to raise the rate, or it will be a combination of the two, says MPC member Varma

'There shouldn't be intolerable growth sacrifice to tame inflation'

With a cautiously optimistic outlook for the country's economy, MPC member Jayanth Varma said growth prospects for 2022-23 and 2023-24 financial years are 'reasonable'

Taming inflation

The US Fed might be able to get the job done at a lower cost than is widely feared

Rupee hits fresh all-time low vs dollar as US rate hike worries deepen

Ends at 78.39/$1 as against 78.08 on Tuesday. Wednesday's closing level also marks new record intraday low for the rupee versus greenback

5 reasons why BofA Securities has cut year-end Nifty target to 14,500

Clarity on macro and monetary policy outlook in the US/India, it said, is the silver lining that could see markets bottom out by August/September 2022., it said

Big rate hikes to be the global norm as inflation remains a challenge

With no end in sight to Russia's invasion of Ukraine, commodity prices remain elevated and supply chains remain disrupted

SBI raises lending rates, HDFC Bank and BoB increase deposit rates

Moves follow RBI's 90-bp repo rate increase in a little over a month

Fitch sees another 100 bps policy rate hike by Dec, cites rising inflation

Growth will improve in June quarter as consumption revives and Covid-19 cases continue falling, it says

Shifting cycle

Investors should be prepared for further turmoil

Builders expect slowdown in housing demand in short-term on RBI's rate hike

The RBI on Wednesday hiked the key benchmark rate by 50 basis points

Policy tightening to pressure FY23 numbers, deficit seen at 6.7%: Report

The government has pegged the combined fiscal shortfall at 9.8 per cent of which the central deficit is seen at 6.4 per cent (down from 6.7 per cent in FY22) and states' at 3.4 per cent for FY23.

Jamie Dimon says JPMorgan is bracing itself for economic 'hurricane'

Dimon said Wednesday that JPMorgan is preparing for that turbulence by being conservative with its balance sheet

Markets will be in consolidation mode for some time: Manish Gunwani

From a two- to three-year perspective, the market looks reasonably rewarding after the recent correction.

Monetary policy must respond nimbly to second inflation round: IMF official

In a Q&A, the lead author of IMF's Asia and Pacific Outlook, dwells on the impact the Fed's move on the benchmark rate could impact India

Ex-Pak FM Ishaq Dar advises govt to renegotiate IMF bailout package

"We have to run the country and not ruin it by taking dictations," said the former Finance Minister, reported Geo News

In no hurry to add to India position; buy only on a dip: Chris Wood

Given the macro headwinds - the need to tighten monetary policy combined with the risk of a much higher oil price, are the key reasons Wood has been in no hurry to add to the 'overweight' position

The rebalancing act

Excess policy accommodation will affect growth

Frothy valuations to take hit as liquidity withdraws: InCred Asset Mgt head

In a Q&A, Mrinal Singh, CEO & CIO of the firm, says Indian markets are better placed than other EMs and there are enough bottom-up opportunities

Shorter-duration funds a good bet amid rising rates, say analysts

In its April 8 monetary policy review, the Reserve Bank of India (RBI) signalled that from being supportive towards growth, its focus would now shift towards reining in inflation