Monetary Policy – Has it entered an “accommodative” phase??

The monetary policy committee’s decision to cut repo rate by 25 basis points was almost a certainty and did not come as a surprise. With inflation remaining subdued for quite some time now and growth not witnessing a pick-up, this was the most appropriate course possible. Even though the committee did not change its stance from “Neutral”, two successive rate cuts makes it more like an “accommodative” stance. Rate cut has been effected despite the fact that CPI inflation has rose to 2.6% in Feb’19 from 2.1% in Jan’19 reflects the confidence of committee is a benign inflation going forward. Barring an external shock in the form of crude price rise or food price rise, the committee seems on course for a few more rate cuts. Here is a look at the details. Continue reading Monetary Policy – Has it entered an “accommodative” phase??

RBI’s 12th Feb Circular – Understanding the Supreme Court’s Ruling

In an important ruling, the Supreme Court has quashed RBI’s circular dealing with loan default and initiation of insolvency process. The ruling has received widespread attention as it deals with a very important and complex issue related to running of businesses. It has come as a big relief not just to specific sectors but to … Continue reading RBI’s 12th Feb Circular – Understanding the Supreme Court’s Ruling
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Brexit – Understanding The Process And The Roadblocks

UK’s exit from EU has reached a nerve wrecking stage after EU rejected UK’s request for three month extension. The British parliament is now voting again on what sort of Brexit they want through what is being called an ‘indicative vote’. Whatever may be the outcome, the chances of having a ‘soft’ Brexit has receded … Continue reading Brexit – Understanding The Process And The Roadblocks
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Corporate Battle – Can L&T Wrest Mindtree??!

Share purchase agreement for 20.3% stake in Mindtree between Larsen & Toubro (L&T) and an existing investor is the beginning of an interesting takeover bid. The bid is generating lot of attention as such a hostile attempt is being made after a long time in Indian Corporate space. Interestingly, L&T itself was target of two … Continue reading Corporate Battle – Can L&T Wrest Mindtree??!
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Producer Price Index (PPI) – Is It Better Than WPI??

Inflation is core of any discussion on economic & policy as the core objective of a welfare nation is to devise policies which help protect the poor. This also prompts economists to strive to find as precise a measure of inflation as possible. While India still follows WPI as the benchmark for aggregate price movement, … Continue reading Producer Price Index (PPI) – Is It Better Than WPI??
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