Banking & Economy Editor @BloombergQuint Interested in the economy, banking and markets (mostly ex-equities). Views are personal
Yes and if one-year ahead inflation projections are showing 4%, they could very well decide that lower rates are still possible.
In hindsight, did we pick the right target? A review will be undertaken at some stage but headline CPI was picked because the Urjit Patel review committee believe that food inflation feeds into generalised inflation via inflation expectations. 4/4 4.
Many cite the flexible inflation target. But the wording of the mandate means that central bank insiders don’t see much flexibility in it at all. So we can crib all we like but the central bank is acting to its mandate 3/4.
This is the cost of inflation targeting. Many like Bimal Jalan had cautioned that India shouldn’t tie itself down to an inflation target. But we decided to go in that direction and there are upsides and downsides to it. This is one of the downside. 2/4
Former economic affairs secretary Subhash Chandra Garg says the headline fiscal deficit this year may be 3.7-4%. The ‘real’ fiscal deficit (including NSSF borrowings, fully serviced bonds, bank recap) may be 4.5-5% of GDP.
The comforting factor - core inflation is still low.
Uttam Agarwal tells Sebi that Yes Bank CEO did not share adequate information with the board. Also alleges that disclosure of $1.2 billion bid from "A global investor" was not cleared by board. Yes Bank said it was reviewing Agarwal's directorship.
After a decade of mixed emotions, what should rupee watchers look for in the 2020s: 1) Does India maintain low / stable inflation ? 2) Does India open up more to foreign capital? 3) Do foreign investors remain believers of the India story. My short take.
What SBI is offering through its ‘Residential Builder Finance With Buyer Guarantee’ or RBBG product: - Bank extends funds to project / provides home loan to buyers - Guarantees refund to homebuyer if Project is struck. Good idea or unnecessary risk?