Tuesday 19 Mar '13The companion piece to this article, a few days ago, sought some insights into why India’s inflation, initially manifest largely in food inflation, but now gradually disseminating to other components in the consumer price index, remained so persistently high, particularly in an environment where growth has slowed so dramatically and swiftly.
Friday 15 Mar '13This is not a paean to cutting rates. It can’t be. Which central bank can legitimately wade into (further) monetary policy easing when the maximum function of the multiple inflation indicators that are tracked by RBI is reading 11%?
Tuesday 25 Oct '11Given the sense of inevitability of continuing tightening at its monetary policy review yesterday, RBI will have sewn up the arguments of its inflation-fighting stance preparatory to another 25 basis points hike to 8.5%, together with a statement of its commitment to carry on with “its unfinished task of taming inflation”.
Monday 12 Sep '11In the hubbub of news of various central banks trying to prevent a sharp appreciation of their respective currencies, portents of deeper changes in the configuration of global currency markets have remained muted.
Tuesday 26 Apr '11The importance of the downgrade of the outlook for US long-term sovereign credit ratings from stable to negative by Standard & Poor’s a few days ago lay not so much in a deep impact on global economic and financial conditions but a reaffirmation of the concerns that have been repeatedly voiced by a wide variety of stakeholders regarding the ballooning US sovereign debt.
Friday 04 Feb '11Given the increasing importance of markets in India’s economy, the need for an accurate reflection of economic reality, in order to calibrate policy and commercial decision making, is becoming acute.
Friday 17 Dec '10RBI continued its pause on policy tightening, as expected, its discomfort with the extent of current liquidity tightness overriding its concern with the emerging risks to prices and inflation.
Monday 15 Nov '10The US Federal Reserve is obviously following the creed of Tagore’s Ekla Chalo. The extraordinarily vocal criticism, in the run-up to this weekend’s G20 Summit, even from as august an individual as Germany’s finance minister, of the Fed’s $600 billion large-scale asset purchase programme, popularly dubbed QE2 conjures up an image justifying the Chairman’s nickname “Helicopter Ben”.
Tuesday 21 Sep '10Coinciding neatly with the second anniversary of the Lehman Brothers bankruptcy, the Group of Governors and Heads of Supervision, the oversight body of the Basel Committee on Banking Supervision, announced a substantial strengthening of capital requirements on banking entities, known as Basel-3, endorsing the capital and liquidity measures originally proposed in December 2009 and amended in July 2010.