Govt retains 4 inflation target for rbis rate panel for 2021 26

Workers load sacks of cement onto trucks parked at a rail yard on the outskirts of Patna, Bihar, India, on Thursday, Feb. 25, 2021. Photographer: Anindito Mukherjee/Bloomberg The Reserve Bank of India’s surveys have no doubt played a part in the rate hike and in formulating the stance of the Monetary Policy Committee. Take, for instance, the survey of household inflation expectations. While it’s true that inflation expectations have come down, they remain elevated, as Chart 1 shows. The last time inflation expectations were this high before the pandemic was in September 2015, when households were yet to recover from the soaring inflation in the post-financial crisis... … [Read more...] about RBI survey data show upbeat business sentiment, elevated inflation

Share to Twitter Share to Linkedin Topline The number of Americans who changed their addresses in May and June dropped nearly 10% this year, according to a new Pew Research Center report released Monday, as rising interest rates and rents cause fewer Americans to move. Key Facts Fewer people moved into every state this year compared to in May and June of 2021, with Maryland and New York facing the biggest drop (14%) followed by California and Louisiana (13%), according to the report, which used data from the United States Postal Service. The smallest year-over-year decreases were in Maine (1%), Delaware (3%) and Michigan, Mississippi and New Mexico (4%). Some of the areas with the biggest decreases were Manhattan’s Upper East Side neighborhood, where moves decreased to 1,371 in May and June (a 44% year-over-year decline), as well as Southwest Washington D.C. (32% decline) and Chicago’s Streeterville neighborhood (30%), according to Pew … [Read more...] about Fewer Americans Are Moving This Year Amid Rising Interest Rates And High Rents

Representative Image In the August Monetary Policy Committee (MPC) meeting, RBI Governor Shaktikanta Das said that the Indian Rupee (INR) has fared “much better than several reserve currencies as well as many of its EME and Asian peers”. The Governor also added that the INR has depreciated “more on account of the appreciation of US dollar rather than weakness in macroeconomic fundamentals of the Indian economy”. Of late, there has been a lot of discussion around the INR. Towards the end of July, the rupee touched 80 against a US dollar , leading to discussions that it is a sign of a weakening Indian economy. But, is this the case? First, exchange rate increasing or decreasing against a foreign currency is not a sign of weakness or strength. In fact depreciation of the currency is often cited as a positive development for the domestic economy. If a currency depreciates against a foreign currency, the exports become cheaper with respect to the other country, and imports … [Read more...] about USD vs INR | India’s macroeconomic fundamentals are strong

Representative image Impostor syndrome seems to be more common than actually thought, though at a collective level. People may often feel that the groups they are affiliated with may be underperforming in comparison to other groups. Although this self-critical approach may work in certain cases, it may also overlook the positives, and decrease the morale of those affiliated with the group. Many in India seem to have a collective/national-level impostor syndrome. While the Indian economy is much better placed than its peers in the emerging markets, and other economies, the government is being criticised on the economic front. The criticism comes when the fundamentals of the Indian economy are robust, despite the exogenous shocks caused by the COVID-19 pandemic, supply chain disruptions, monetary policy tightening by the US Federal Reserve, the Ukraine-Russia conflict, and inflated crude oil prices. India's macroeconomic health remains robust despite external pressures, and ongoing … [Read more...] about Bibek Debroy writes: India’s economy is better placed than its peers, other economies around the world

The International Monetary Fund (IMF) has cut its gross domestic product (GDP) growth forecast for India for the current financial year by 80 basis points to 7.4 percent. A similar downgrade has been made to the growth forecast for FY24, which now stands at 6.1 percent as against 6.9 percent earlier. "For India, the revision reflects mainly less favourable external conditions and more rapid policy tightening," the IMF said on July 26 in an update to its World Economic Outlook report. Russia's invasion of Ukraine in late February disrupted supplies of crucial commodities, pushing up prices globally. Consequently, key central banks in the developed world, such as the US Federal Reserve, have begun tightening their monetary policies in earnest to cut down multi-decade high inflation . This has exerted further pressure on the Indian rupee, which has hurtled to multiple record lows in recent weeks and last week breached the 80-per-dollar mark for the first time . Close … [Read more...] about IMF cuts India’s FY23 growth forecast by 80 bps to 7.4%

U.S. stocks continued to claw their way back last week, especially growth stocks . For the week, the Nasdaq posted a gain of 2.2% and the S&P 500 rose 0.4%. The Dow? Not so much, sliding just 0.1%. A blowout jobs report for July offered up another dose of good news for the economy and not-so-good news for the stock market, but equity investors hung in there. U.S. employers added 528,000 jobs to their payrolls last month , which was more than twice what was expected, and that added credence to the Federal Reserve 's stance that the U.S. economy is not in a recession given the continued strength of the labor market. So, the thinking goes, the Fed will continue to be aggressive in raising interest rates to cool down inflation, because it's not impacting companies' willingness to hire. That led to a steep selloff in U.S. Treasurys, with the yield on the 10-year Treasury note ending the week at 2.83%. Oil prices continue to tumble, hitting their lowest level since early … [Read more...] about Live from InvestFest with Downtown Josh Brown, BitBoy Crypto, and Lamar Wilson

Share to Twitter Share to Linkedin The pandemic fueled a meteoric rise in rental prices, and a severe shortage of supply isn’t helping. The nation’s median rental price hit its latest new high of $1,849 per month in May, representing a 26.6% increase since 2019 before the pandemic began, according to the Realtor.com monthly rental report released today. A key factor driving the ongoing rent surge is a lack of supply, as rental vacancy rates, which were already trending lower, have taken a sharp dive during the pandemic. These trends are magnified in the biggest cities that tend to attract younger residents, many of whom are in the early stages of their careers and looking for the flexibility in their living situations. “We do not have enough housing, and increased costs are a concern for all, including the 40 million Americans who choose to rent,” said Bob Pinnegar, president and CEO of the National Apartment Association. “The white-hot housing market … [Read more...] about Sky-High Rental Prices Surpass Pre-Pandemic Levels By More Than 25%

Share to Twitter Share to Linkedin 2021 was the year net-zero commitments went mainstream. Following the COP 26 climate conference in Glasgow, well over 100 governments have set a net-zero decarbonization target. These commitments cover 88% of global emissions, 90% of global GDP, and 85% of global population . Nearly one-thousand municipalities and over three thousand private businesses have also made net-zero commitments as part of the UN’s Race to Zero decarbonization initiative. While these commitments are a positive first step, they must now be backed by concerted action. The stakes are higher than ever as climate change continues to intensify. Net zero by 2050 is a science-based goal that aims to limit the worst effects of global warming. Policymakers, business leaders, and the public should understand both the origins and urgency around this crucial climate goal. A manmade crisis Human activities produce around 35 billion tons of carbon … [Read more...] about How Net Zero Became Our Global Climate Goal And Why We Need It