Posted at 7:20 PM , on November 28, 2016
Could we see a greater shift out of monetary policy focus?
Over the last few weeks, there are 2 independent events that may be indicative of a larger paradigm shift that may be happening. Japan decided to focus on fiscal policy rather than monetary policy. Trump has already started talking about massive tax cuts and infrastructure spending. Is this shift towards fiscal policy for real? Continue reading
Posted at 10:45 AM , on October 14, 2016
Consumer price inflation for the month of September 2016 was sharply lower at 4.31% as compared to 5.05% in the month of August 2016. It needs to be remembered that in the month of August, the CPI inflation had already shown a sharp fall from the level of 6.07% in the month of July. This sharp fall in inflation can be largely attributed to food inflation coming under control as well as the contribution of the base effect. The good monsoon during the year as well as the expectations of a bumper Kharif crop have been instrumental in bringing down food inflation as well as overall inflation sharply. Here are some key takeaways from the CPI numbers for September 2016… Continue reading
Posted at 1:16 PM , on August 4, 2015
There was a crescendo of excitement that was built around the Monetary Policy announcement. In the last few days the opinions were increasingly divided. The status quo camp believed that there would be no rate cut due to uncertainties over inflation and the Fed meeting in September. The rate cut camp (including the likes of Moody’s) believed that a 25 basis point rate cut was likely due to low growth as well as the Federal Reserve Board (FRB) minutes hinting at postponing the rate hike to December. In the end the status quo camp prevailed. Now for the highlights of the monetary policy announced by the RBI on 04th August 2015! Continue reading