INFLATION TARGETING POLICIES

The Reserve Bank of India (RBI) is prioritizing clear communication in its monetary policy, aligning with global practices. While the RBI emphasizes transparency, it refrains from providing specific forward guidance on inflation. Research indicates ...

RBI Governor Shaktikanta Das reaffirmed the central bank's commitment to achieving the 4% inflation target, effectively ruling out immediate rate cuts. His comments come amidst calls for rate reductions from government officials. While acknowledging...

Reserve Bank Governor Shaktikanta Das emphasized the importance of price stability for sustained economic growth. He stated that the RBI is committed to bringing down retail inflation to 4% on a durable basis. Das highlighted that the central bank's...

A new report by Goldman Sachs suggests that India's economy will likely remain stable despite potential global economic shocks in 2025, including a possible US-China trade war. Although the country's GDP growth is predicted to slow to 6.3 percent du...

Federal Reserve Governors Michelle Bowman and Lisa Cook expressed differing views on future monetary policy. While Bowman urged caution due to persistent inflation, Cook expressed confidence in continued easing of price pressures. Their perspectives...

India's retail inflation hit a 14-month high in October, sparking debate about the country's inflation targeting framework. While some officials call for excluding volatile food prices from interest rate decisions, others emphasise the significant i...

S&P Global Ratings believes India's expanding supply capacity, particularly in manufacturing, will curb inflation. They expressed confidence in the Reserve Bank of India's ability to manage inflation despite it currently exceeding the target range. ...

U.S. annual inflation likely rose to 2.6% in October after seven months of decline, potentially impacting the Federal Reserve's interest rate decisions. Despite this uptick, economists predict inflation will continue to slow, with consumer prices ex...

The U.S. dollar hovered near a 6-1/2-month high, buoyed by expectations of inflationary policies under the incoming Trump administration. Bitcoin paused near record highs. Investors awaited U.S. inflation data, which could influence the Federal Rese...

Indian economy: Optimistic GDP growth projections for FY25 rely on strong government investment and effective inflation control. Despite a forecasted 7.2 per cent growth, looming risks include a significant contraction in government investment spend...

The Bank of Japan maintains ultra-low interest rates, signaling caution amid global economic uncertainties, while projecting inflation near its 2% target in coming years. The decision reflects a focus on risks to Japan's fragile recovery, with poten...

Goldman Sachs predicts consecutive 25-basis-point rate cuts by the U.S. Federal Reserve from November 2024 through June 2025, targeting a terminal rate of 3.25%-3.5%. This follows the Fed's recent half-point rate cut. The European Central Bank is al...

Inflation is projected to align with the 4 percent target in the coming fiscal, according to Reserve Bank deputy governor Michael Patra. He mentioned climate change and digitisation as future challenges to monetary policy. Patra noted that inflation...

Climate change and digitalisation are expected to challenge central banks, like the Reserve Bank of India, in managing inflation-targetting policies. Issues like supply shocks from climate events and shifts in credit supply due to digitalisation cou...

RBI deputy governor Michael Debabrata Patra projected retail inflation to average 4.5% in 2024-25, aligning with the target by 2025-26. He highlighted the unique challenges due to food and fuel price shocks, emphasizing monetary-fiscal coordination ...

The Reserve Bank of India maintains rates and changes its policy stance to 'neutral', indicating confidence in managing inflation and promoting robust growth. Bankers expect future rate cuts depending on the inflation trend. Enhanced UPI limits and ...

The RBI indicated a shift to a neutral policy stance despite expectations of rate cuts. It emphasized domestic growth and inflation risks, citing weak real incomes and financial stability concerns in the BFSI sector. A potential rate cut needs slowe...

RBI MPC October Meeting: The Reserve Bank of India shifts to a neutral stance while maintaining the repo rate at 6.5%. Experts anticipate a possible rate cut in December. The focus remains on controlling inflation and supporting growth amidst resili...

Research by the RBI reveals that monetary policy transmission is more effective with increased formality in the labour market. A higher share of formal sector employment enhances the impact of policy measures on inflation and output, suggesting bett...