THERE IS A growing voice that the repo rate needs to be cut; and this message also comes from some of the minutes of the Monetary Policy Committee (MPC) meeting. The advocates of a rate cut have also reiterated that when inflation is high due to food inflation, a high repo rate cannot quite bring down prices of food items. Therefore, logically, the focus should be on growth which could be under pressure.
The important point here is that the MPC has been mandated to target headline inflation at 4% within a band of 2%. This target is cast in stone and bringing in any other consideration may be viewed to be outside its mandate. So, if one wants to leave aside food inflation it would mean going back to the mandate and changing it. There are talks of revising the composition of the consumer price index, which is fair enough. Once done the weights would change, and if food has a lower weight it should reflect in the overall index.
Esta historia es de la edición December 24, 2024 de Financial Express Chandigarh.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición December 24, 2024 de Financial Express Chandigarh.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
A fresh take on gifting
FERNS & PETALS MUST OFFER A BIGGER BOUQUET
SpaDeX: Isro brings satellites within 3-metre in trial attempt
MOVING TO ATTEMPT docking in space, the Indian Space Research Organisation (Isro) brought two SpaDeX satellites as close as 3 metres to each other Sunday morning.
Bumrah set to miss league stage of Champions Trophy
IN A SETBACK for India, strike bowler Jasprit Bumrah is likely to miss the group stage of next month's Champions Trophy due to health reasons.
Devajit, Prabhtej elected BCCI secretary, treasurer
DEVAJIT SAIKIA, an advocate and a former wicket-keeper batsman from Assam, would succeed Jay Shah as the new secretary of the Indian cricket board (BCCI). He was elected unopposed—a poll was not contested as there were no contestants, electoral officer A K Joti stated in his declaration of results—to the seat left vacant after Shah assumed the office of the International Cricket Council chairman in December last year.
Anthem row intensifies in Tamil Nadu as Governor slams CM
A row between Tamil Nadu Governor R N Ravi and Chief Minister M K Stalin escalated on Sunday after Ravi accused the latter of \"arrogance,\" asserting that respect for the National Anthem and constitutional duties was non-negotiable.
We see early signs of revival, but challenges remain, says TCS CFO
How are AI projects shaping returns?
IIT-K Steps In For Cyber Security At Maha Kumbh
WITH THE DIGITAL landscape changing considerably in the 12 years since Maha Kumbh was last held, the Uttar Pradesh government is anticipating a bigger threat this time from misinformation on social media and online frauds, and has roped in experts from IIT Kanpur to address these concerns.
40% Govt Tenders Can't Comply With 'Make in India' Rules
Enforcing the 2017 Make-in-India order in government procurement is easier said than done.
Jaishankar will be representing India at Trump's inaugural
EXTERNAL AFFAIRS MINISTER S Jaishankar will represent India at the January 20 inauguration of US President-elect Donald Trump.
Good audio on a budget
EARPHONES HAVE BECOME an essential part of everyday life, whether you're listening to your favourite music, playing mobile games or taking work calls.
