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.
This story is from the December 24, 2024 edition of Financial Express Hyderabad.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 24, 2024 edition of Financial Express Hyderabad.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
A middle-class meltdown
Economic shift, stagnating real income post Covid weigh on spending on daily items
Shyam Benegal cremated with full state honours
VETERAN FILMMAKER SHYAM Benegal, the pioneer of the parallel cinema movement in Indian cinema in the 1970s and 1980s, was cremated on Tuesday with full state honours and a three-gun salute.
Net gains: Secured Virat, cautious Rohit gear up
INDIA GOT a chance to bat in the nets on fresher pitches on Tuesday, their last day of training as Christmas day is a rest day for them.
Champions Trophy: India to play Pakistan on Feb 23
INDIA WILL PLAY all their matches of the Champions Trophy in Dubai with the marquee clash against arch-rivals Pakistan scheduled on February 23, the International Cricket Council (ICC) announced on Tuesday.
Local satellites push draws 30 aspirants
The applicants for INSPACe's latest effort in this regard include startups such as Google-backed Pixxel and Baring Private Equity-backed SatSure, as well as larger entities like Tata Group's Tata Advanced Systems.
Labour-intensive exports: Gains likely to be short-lived
India's textile export growth is likely to be short-lived despite a recent surge, driven by factors such as a volatile rupee and unrest in competing nations like Bangladesh. While this presents opportunities for Indian companies, long-term gains require increased competitiveness and product diversification.
₹2-cr fine on Deloitte Haskins for Zee audit
In September 2018, the chairman of ZEEL, who is also the promoter of Essel Group of Companies, issued a letter to Yes Bank, and committed ₹200 crore of fixed deposit (FD) of ZEEL as a guarantee for the loans given by the bank to group company Essel Green Mobility.
Walking into a minefield
Even though she made a very strong pitch that funds will move away from the regulated markets towards crypto and similar assets, if bourses don't move towards instantaneous settlement, neither brokers, nor the exchanges made a real effort to back her.
EAM in US to boost bilateral ties
IN WHAT IS expected to be the first high-level contact between the incoming Trump 2.0 administration and the Indian government in its third term, external affairs Minister S Jaishankar is likely to meet the new Trump team in the US.
Economists for FTAs, land & labour reforms
RCEP was signed by the group of countries in November 2020 except India.
