The report notes that the current monetary system has repeatedly been criticised by senior policy makers, due to the stresses created outside the United States from major shifts in US monetary policy.
“Inflation in India is in reasonably good shape right now, compared to the rest of the world,” says Diamond, who won this year’s Nobel Memorial Prize in Economics.
UN agency attributes decline in growth to impact of weakening global economy and the fiscal pressures that may prevent the govt from ramping up its overall capital expenditure beyond a point.
RBI Governor Shaktikanta Das says the world has been confronted with one crisis after another in the past two-and-a-half years. Now, aggressive policy tightening is the third shock.
The monetary tightening amid fight against inflation will not affect the credit off-take and investment cycle in the economy, says SBI Chairman Dinesh Khara.
Morgan Stanley sees India’s inflation falling to 6.5% in FY23 from 7% estimated earlier, as it sees moderation in commodity price increases improving in the near-term
In recent months, demand-led CPI inflation has moved up a bit, while supply-led CPI inflation continues to moderate, SBI says.
With RBI increasing rates, investment climate subdued and Ukraine war in full swing, government finds it hard to check inflation without hurting economic growth.
While a majority of indices tanked today due to rate hike by RBI, LIC IPO was saved from dampening spirit of the Indian stock markets in the nick of time.
The monetary panel has decided to retain its accommodative stance from its meeting in April, with an eye accommodation withdrawal.
