India has the oldest stock market in the world, the Bombay Stock Exchange. However, the equity cult is yet to take roots in India in a big way. For decades, Indian investors have preferred assets with a physical and tangible presence. Hence gold, land and property have been preferred investment options in India. However, it is stocks that can help you generate wealth over the long term. Of course, stocks need to be bought carefully, on the basis of professional advice and held for the long term. More importantly, these stocks need to be monitored regularly… Continue reading
Should the RBI give it up and focus only on growth?
Of late there has been a clamor from many economists and policy makers for RBI to give up on inflation targeting. What exactly does this mean? Inflation targeting is setting a medium term target of inflation and then using various tools to ensure price stability. Dr. Rajan has been a firm proponent of inflation targeting and most critics are of the view that inflation targeting comes at the cost of growth. Here are 3 reasons why inflation targeting must not be abandoned… Continue reading
It could have larger implications for the world economy…
The Bank of England (BOE) cutting rates was never a question of whether, but when. It was clear that post-BREXIT there would be pressure on the British central bank to propel the economy with monetary support. Infusing liquidity is the easiest and most impactful measures of pumping up the economy. But the implications of the BOE rate cut could actual stretch much beyond UK. Here are 3 key impact areas… Continue reading
As usual, the policy was pragmatic and data driven…
The August 09th monetary policy had the stamp of Dr. Rajan written all over it. It was pragmatic and as usual the RBI governor was driven more by the reality of the situation. The next policy will be announced by the new governor on October 04th and will most likely be driven by the Monetary Policy Committee (MPC). Here are some of the key takeaways from the policy… Continue reading