The decision not to cut the policy rate was expectedly guided by the current high inflationary environment and still-inadequate monetary transmission. The focus clearly is inflation (vis-à-vis growth), what with the December headline inflation shooting past 6 percent — the upper end of the target band of the Reserve Bank of India (RBI). RBI’s own estimates suggest that inflation, driven mainly by food, will stay above the comfort threshold at least up to the first half of fiscal 2021. … [Read more...] about RBI policy review | The next rate cut is only a matter of timing
Worst movie rated on rotten tomatoes
The middle class cheered as the Hon’ble Finance Minister announced significant cuts in personal tax rates for individuals and HUFs. The government vocalised its underlying intent to boost people’s income and stimulate demand and growth. However, the tax cuts are accompanied by a cost where taxpayer electing the lower tax regime would need to forego specified personal tax deductions and exemptions. … [Read more...] about Budget 2020|Personal tax rate cuts – to elect or not to elect?
While transmission from the credit segment has stayed depressed, that of the bond segment has definitely improved. Interestingly, the 10-year bond yields have slid 24 basis points since mid-December. Yields eased further after the Budget as the government’s gross borrowing plan at Rs 7.8 lakh crore met market expectations. … [Read more...] about Monetary and fiscal policies need to go hand in hand
The MPC has projected a pick-up in GDP (gross domestic product) growth to 6 percent for FY21 (from 5 percent in FY20), which is in line with our estimate. The growth projection for H1 FY21 has been lowered to 5.5-6 percent from the forecast of 5.9-6.3 percent in the December policy review, and placed at 6.2 percent for Q3 FY21. We concur with the committee’s assessment that the upturn in some lead indicators is yet to become broad-based. … [Read more...] about RBI Policy | Stance to stay accommodative as long as output gap is negative
On one wall of Learman’s office there are a number of showcards with his recent hits. His work for Heinz Salad Cream uses a type that is also rooted in the 1950s, but slightly washed out, linking it with endless summers and postwar austerity. Next to it, Heinz Big Soup is sold with a bloated font, full of its own cud-chewing goodness. These are specialist types carefully sourced from the online directories. But next to them are bold Helvetica capitals offering “SOLITARY REFINEMENT” above a photograph of a wide leather seat, and “THE RED THE WHITE AND THE BLUE” above a photo of two bottles of wine and a window on a cloudless sky. These are newspaper adverts, and have an unusually large amount of text, chiselled in the shape of skyscrapers. “Ahhh … Blissful solitude,” the first of these ads begins. “Imagine floating high above the earth cocooned in your own perfect little world … ” The seduction–about ergonomically … [Read more...] about How Helvetica Conquered The World With Its Cool, Comforting Logic