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The benchmark bond yield retreated below 7% on expectations that New Delhi would now need to borrow less this fiscal year. “The higher dividend is welcome, of course,” finance secretary TV Somanathan told ET. “It exceeds our estimate by 0.2-0.3% of GDP.” In the interim budget, North Block had factored in receipts of Rs 1.05 lakh crore under dividends and profits.
A subtle shift from Friedman to Kelton? : Rashtra News #subtle #shift #Friedman #Kelton A popular phrase that economists often borrow to describe inflation is from Milton Friedman: Substantial inflation is always and everywhere a monetary phenomenon. Prices have surged in the past few months in a manner a generation hasn't witnessed, prompting central bankers
Indias monetary policymakers have underscored the need for durable control over inflation, which faces upside risks due to volatile food and energy prices, although sustained robust growth has now given Mint Road more than adequate elbow room on rate action.
In the last monetary policy committee (MPC) review on rates earlier this month, the panel decided to keep the policy rates unchanged, stretching the status quo on the cost of funds to at least 16 months.
India is probably a positive outlier in the world hobbled with economic challenges, offering Mint Road the opportunity to further consolidate its war on inflation that has been restrained over the past few quarters from leaping. However, risks to price stability have not entirely receded into the background, said RBI Governor Shaktikanta Das, after the first policy review meeting in the new fiscal year.