The conundrum of repo rate arguments
Financial Express Mumbai|December 24, 2024
Monetary policy always triggers debate as theoretical arguments on both sides: repo rate induces investment or repo rate lowers inflation are equally strong
MADAN SABNAVIS

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.

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FINANCIAL EXPRESS MUMBAI DERGISINDEN DAHA FAZLA HIKAYETümünü görüntüle
Financial Express Mumbai

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.

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Financial Express Mumbai

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.

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Net gains: Secured Virat, cautious Rohit gear up
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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.

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A middle-class meltdown
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A middle-class meltdown

Economic shift, stagnating real income post Covid weigh on spending on daily items

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EAM in US to boost bilateral ties
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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.

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Financial Express Mumbai

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COLLABORATIVE PHILANTHROPY is not a new idea.

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IOC to invest ₹61K cr for Odisha project
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IOC to invest ₹61K cr for Odisha project

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18% GST on used EV to be paid on seller's margin
Financial Express Mumbai

18% GST on used EV to be paid on seller's margin

A REGISTERED PERSON will have to pay an 18% Goods and Services Tax (GST) on sale of old and used vehicle only if the seller has earned a margin, which is if the selling price is higher than the depreciation adjusted cost price of the vehicle, official sources said.

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Changing the lens can make a big difference
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Changing the lens can make a big difference

Why the campaign rocks: It's great to witness the growing number of gender-forward campaigns, each challenging outdated norm and fostering more inclusive, progressive narratives.

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Road to relevance
Financial Express Mumbai

Road to relevance

How to craft a brand strategy that stands the test of time

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