FROM 'ELEPHANT' TO 'horse'―Reserve Bank of India (RBI) Governor Shaktikanta Das’ outlook on inflation seems to have seen a shift. What was ‘slow moving’ is now ‘agile’ and needs to be kept on a tight leash. What brought about this shift in analogy? According to retail data for September, retail inflation has seen a 5.5% year-on-year jump on the back of an increase in vegetable prices.
“The RBI governor stressed that though the risk of inflation is diminishing in the medium term, multiple factors could impact it in the short term. This stance indicates that the RBI has turned cautious and continues to remain hawkish in the short term to ensure inflation is under check,” says Deepak Ramaraju, Senior Fund Manager of financial services company Shriram AMC. There are numerous factors at play—right from the US Federal Reserve’s shift in policy and rate cut guidance, rising geopolitical tensions, China’s stimulus to arrest economic slowdown, to Japan’s surprise decision to raise interest rates.
But experts are not reading too much into metaphors. “RBI’s tone remains focussed on the growth-inflation balance while keeping its eye on external factors,” says Anitha Rangan, Economist at Equirus, another financial services player.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
VINE TO VINO
Calling all wine lovers to explore India's wine trails and vineries
TIGHT FINISHES AT TOLLY
RAZOR-SHARP COMPETITION WAS THE ORDER OF THE DAY FOR ROYAL RANTHAMBORE BT GOLF'S KOLKATA LEG AT THE HISTORIC TOLLYGUNGE CLUB
Helping More Indians Fly
We need to think and dream big, and combine that with flawless and speedy execution, accompanied by deep reforms
Fighting The Dragon
China's subsidies and export strategy have accelerated its dominance in the EV space. Amid fears of EV 'dumping', can India withstand the Chinese onslaught?
Buckle up for the Ride of a Lifetime
Many IPOs flunked, while several fell below ethical governance standards, and quite a few bombed. However, the capital markets have their own way of self-regulating excesses
❝Slow down but stay involved"
IndiQube provides flexible workspaces
Ready for Take-off
Total passenger traffic has grown from around 120 million to over 236 million per annum. Indian aviation sector continues to soar, and the best is yet to come
BURMANS IN CONTROL
After a long battle, the Burman family has seized control of Religare. It needs to infuse money and get it back on track
Reimagining India's Public Sector
India's policies since 1991 have been to get government out of business' way. Robust public sector is needed for providing basic needs equitably
No Theme Lasts Forever
A sensible investment strategy involves ignoring the noise and using a systematic criterion to pick assets. A good investment strategy can be boring
