Rigid rate guidance risks constraining monetary policy, while clearer communication on exchange rates can steady markets.
Ashima Goyal
RBI
Wholesale and retail inflation continued to accelerate as the war in West Asia pushed up prices, raising concerns about the inflation outlook.
Datametricx
Istock.com
October policy action reflects a forward-looking response to widening inflation, unfinished cost pass-through and a narrowing real-rate cushion.
Sparsh Chhabra
istock.com
The Supreme Court has revived Yes Bank AT1 bondholders’ claims, but the ruling stops short of guaranteeing repayment, leaving coupons, valuation and enforcement unresolved.
Rahul Ghosh
iStock.com/naveen0301
As surplus liquidity drains, SBI Research sees scope for an interim MSF rate hike to tighten funding conditions before a December repo-rate increase.
Richard Fargose
SEBI’s closing auction may improve price discovery, but that does not automatically make the same price the best benchmark for derivatives settlement.
Basis View
wikimedia commons
The court ruling revives bondholders’ claims, but any resulting cost will fall on a bank whose ownership has changed since its 2020 rescue.
Anil Katia
iStock.com
BasisPoint Insight
A useful interview cannot substitute for timely explanations. The RBI needs written clarity on its decisions, not after markets start guessing.
Kalyan Ram
The chronology suggests the rupee’s post-policy fall turned an old concern about dollar positioning into a crackdown on importers and banks.
Abheek Barua backs calibrated tightening but says repeated supply shocks complicate the inflation target and limit rate support for the rupee.
In India, financial stability has become the official equivalent of a Swiss Army knife: whatever the problem, invoke the phrase, pull out an intervention. If that fails, deliver another speech.
Banker Emeritus
Durga pooled her powers, Delhi’s youth took to the streets, and the RBI hiked. Why every act of progress is a leap of faith, even a 25 bps one.
Phynix
With the world now in a permacrisis, monetary policy needs a new operating paradigm, as the RBI may not be dealing with textbook supply shocks.
Abheek Barua
The RBI can make betting against the rupee harder. Restoring confidence requires firmer monetary policy, not a verdict on markets’ rationality.
The RBI’s rate hike acknowledges rising inflation, but its diagnosis understates cost pressures, uneven demand and risks from abundant liquidity.
Dhananjay Sinha
The rupee may be undervalued, but dollar demand, costly oil and weak capital flows leave the RBI managing a decline it cannot simply talk away.
A 6% terminal rate may suffice if core inflation is contained, but surplus liquidity and the risk of cost pass-through complicate the RBI’s task.
Sameer Narang
With price pressures broadening and growth holding up, attention turns to liquidity and expectations. How will oil, the rupee and global yields shape the decisions still to come?
Radhika Piplani
Vivek Kaul is a writer and an economic commentator.
Michael Patra is an economist and former RBI Deputy Governor.
Dr Subbarao is a former governor of RBI
Arvind Mayaram, former Finance Secretary, is Chairman of the Institute of Development Studies, Jaipur.
Dr Ashima Goyal is an Economist, Ex MPC Member.
Ajay Srivastava is the founder of the Global Trade Research Initiative.
Abheek Barua is the former Chief Economist of HDFC Bank. He teaches at Ashoka University.
Vijay Singh Chauhan, a former IRS official, is a Senior Visiting Fellow at ICPP, Ashoka University
Gurumurthy is an ex-central banker who handled markets, and later, financial stability for RBI.
Gaura is Chief Economist at IDFC First Bank.
Sharmila Kantha is an industrial policy specialist and author.
Lt Gen Hasnain is Governor, Bihar, and Former Commander of Chinar Corps.
Dhananjay, a D-School alum, is CEO and Co-Head of Equities at Systematix Group.
Ex-civil servant Chavaly held key Railways, Finance roles; specialises in infra & PPPs
Srinath is an author, corporate advisor, and independent director on corporate boards.
Amitabh Tiwari tracks politics with a strategic eye