What is 'Monetary Policy'

Related News

• Outgoing RBI policymaker contradicts central bank on food risksJayanth Rama Varma — an academic whose four-year term as an external member on the monetary policy committee comes to an end in early October — said over the past year or so, “food inflation has consisted largely of transient spikes that do not spill over into core inflation.”
• MPC should pay more heed to core inflation, says outgoing member Ashima GoyalAshima Goyal, a member of India's Monetary Policy Committee, emphasized the importance of focusing on core inflation for long-term household inflation expectations. She suggested that the committee should provide guidance on liquidity conditions. Goyal highlighted that recent interventions in India's monetary policy have helped lower inflation and stressed the need for supply-side action to ensure non-inflationary growth.
• With Fed's shift to job market risks done, policy now has to catch upIn 2022, the Federal Reserve focused on combating inflation by rapidly raising interest rates. Two years later, the focus has shifted to protecting the job market, with potential rate cuts on the horizon. Fed Chair Jerome Powell's recent speech at the Jackson Hole conference highlighted the need to address job market risks. The economy is at a critical juncture as officials debate the pace and extent of rate cuts to maintain full employment.
• SBI Research anticipates Q1 GDP growth at 7.1%, in line with RBI forecastThe Indian economy is projected to grow by 7.0-7.1% in Q1 of 2024-25, according to an SBI Research report. This forecast, however, carries a downward bias. The Reserve Bank of India has predicted a 7.2% GDP growth for the entire fiscal year, with quarterly growth estimates of 7.1% for Q1.
• MPC should pay more heed to core inflation, says Ashima GoyalAshima Goyal, a member of the Monetary Policy Committee (MPC), emphasized the need to focus more on core inflation due to its significant impact on household inflation expectations. Goyal's term on the MPC will end in early October. Additionally, she suggested that the MPC should expand its role to include providing guidance on liquidity conditions in the banking system.
• Dollar falls after Powell greenlights September easingThe dollar weakened as sterling hit a two-year high following Federal Reserve Chair Jerome Powell's indication of a likely U.S. interest rate cut. Powell's remarks pointed to a decreased risk of inflation and heightened concerns about employment. This expectation boosted the euro and yen, contributing to a 0.81% drop in the dollar index.
• Trading in Asian markets is mixed and muted ahead of a key Fed chair speechAsian markets experienced mixed trading as investors looked forward to guidance from Federal Reserve Chair Jerome Powell on possible rate cuts. Japan's Nikkei 225 rose slightly, while stocks in Australia and South Korea saw minor losses. U.S. markets also faced declines amid mixed economic signals, with Powell's upcoming speech in focus.
• Fed's Powell says 'time has come' to cut interest ratesFederal Reserve Chair Jerome Powell stated that the central bank is set to reduce interest rates. Citing increased risks to employment and nearing the 2% inflation target, Powell emphasized the importance of supporting the job market to prevent further weakening. He noted the unemployment rate is at a level that aligns with stable inflation.
• Goldman Sachs cuts India’s 2024 and 2025 GDP growth forecastsGoldman Sachs lowered India's economic growth projection by 20 basis points for the next two years, highlighting a significant drop in government spending as a key factor. The new forecasts are 6.7% for 2024 and 6.4% for 2025. The Reserve Bank of India's stricter lending rules and fiscal constraints are expected to slow growth, despite potential easing of monetary policy.
• Gold prices decline by Rs 350, silver drops Rs 200Gold prices declined by Rs 350 to Rs 73,800 per 10 grams in the national capital on Friday, according to the All India Sarafa Association. In the previous session, gold of 99.9 per cent purity traded at Rs 74,150 per 10 grams.