Amid fears over retail inflation, everyone believes that the central bank will continue to wait and watch as a rate hike is out of question for now. The June inflation numbers will be key.
While the Reserve Bank of India kept policy rates and its accommodative stance unchanged, additional monetary measures have been brought in to fight the second wave of Covid-19.
It is the time of the year to start chasing dark clouds over the Arabian Sea. Normal rains will offset the demand recession induced by the pandemic and wash away a lot of the country’s woes.
The central bank unveils liquidity facility of ₹50,000 crore for access to emergency health services, and ₹10,000 crore for small finance banks’ on-lending, among a slew of measures to fight Covid-19.
The recent surge in Covid-19 infections, the central bank says, adds uncertainty to the outlook on domestic growth as restrictions could dampen demand improvement and delay the return of normalcy.
According to a BofA Securities report, the Covid-19 shock could delay India touching the GDP of Japan by three years. In their latest estimates, it will now happen by 2031 if the economy grows at 9%.
After a fall in prices in 2021 so far, gold is becoming attractive again. Analysts believe the rupee depreciation and potential inflation may spur it to a new high in the latter half of 2021.
The veteran of the investment industry argues that this decade will witness an export-led growth. And while IT and pharma would rule the economy, other smaller industries, too, will jostle to rise up.
