Central banks are on the horns of a policy dilemma

The persistence of inflation and the need to be expansionary to spur growth are trying to draw the cart in opposite directions Inflation persistence is one of the serious policy dilemmas faced by central banks. This will continue to pull policymakers in opposing directions for some more time to come. This is similar in the […]

Inflation surges again…

The CPI based inflation surged for the month of Jan’23 and was reported at 6.52%, a three month high. After easing for two consecutive months, the headline inflation numbers have surged again and has landed outside the RBI’s target range. The headline inflation number for the preceding month and for the year ago period was […]

RBI Policy: Perspectives

RBI has hiked the Repo Rate by 25 bps from 6.25% to 6.50%, reaffirming its commitment to containing inflationary pressures. The rate action was expected from the RBI in view of the inflationary trend and also against the background of the Fed hiking the Fed Funds rate again. The need to protect the Rupee by […]