US central bank poised to cut rates at Sept. 17-18 meeting Fed policymakers focused on cooling labor market Traders expect Fed’s first move to be 25-basis-point cut By Ann Saphir, Lindsay Dunsmuir and Michael S. Derby Sept 6 (Reuters) – Federal Reserve policymakers on Friday signaled they are ready to kick off a series of … Read more
A consensus appears to be emerging among the external members of the Reserve Bank of India’s monetary policy committee that high interest rates are damaging to economic growth, a sign that the debate over the timing of any easing is intensifying. Jayanth Rama Varma and Ashima Goyal voted at the June meeting for a rate … Read more
The Reserve Bank of India (RBI) Friday maintained policy interest rates and its monetary stance for the eighth straight review meeting amid concerns of a likely spike in food prices, but cracks in Monetary Policy Committee widened with two of the six panel members favouring easier money. It also raised the forecast of economic growth … Read more
Easing of rates by the Reserve Bank of India might still have to wait going by the hawkish tone in an assessment of the economy published by the RBI economists in its latest monthly bulletin. “A modest easing of headline inflation in the reading for April 2024 confirms the expectation that an uneven and lagged … Read more
RBI‘s monetary policy committee on Friday decided to keep interest rates on hold for the seventh successive meeting, stating that “growth has surpassed all projections but cautioned that food price uncertainties continue to weigh on the inflation trajectory going forward”. RBI governor Shaktikanta Das said, “Two years ago, when inflation was at its peak at … Read more
Temporary food shocks, fiscal consolidation and high real interest rates have created the scope for reduction in policy interest rates, said external members of the Monetary Policy Committee, but those from the Reserve Bank of India (RBI) believe that the markets are running ahead of policy makers. Prof. J.R. Varma, who voted for a reduction … Read more
You have criticized monetary policymakers’ response to the 2008 global economic crisis, which had profound spillover effects to which they “paid insufficient heed.” In your new book, Monetary Policy and Its Unintended Consequences, you offer a “sketch of a model” showing how monetary-policy spillovers “cause leveraging, booms, and eventually busts in capital-receiving countries.” How … Read more
Federal Reserve policymakers at their most recent meeting united around a strategy to “proceed carefully” on future interest-rate moves and base any further tightening on progress toward their inflation goal. “All participants agreed that the committee was in a position to proceed carefully and that policy decisions at every meeting would continue to be based … Read more
Retail inflation moderated to 6.83% in August from a 15-month high of 7.44% in July due to easing vegetable prices, offering a measure of relief to the Indian central bank and bond investors. Consumer Price Index (CPI)-based inflation, however, continued to exceed the Reserve Bank of India’s (RBI’s) target range of 2-6%. A Mint poll … Read more