Central bank in neutral may be reading India's prices wrong
One argument pertains to the weights the RBI assigns various consumption patterns in its CPI basket
Mumbai
AS India's monetary policy committee begins its two-day meeting, the inflation-targeting central bank may be using flawed price measures as the basis for its swing to neutral policy.
All 50 economists in a Bloomberg survey predict the Reserve Bank of India will leave the repurchase rate unchanged at 6.25 per cent on Thursday, as price pressures appear to be picking up. Governor Urjit Patel is concerned about core inflation - stripping out volatile food and fuel costs - which he says is worryingly sticky.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Israel concerned over possible ICC arrest warrants related to Gaza war
China’s top airlines improve balance sheet in Q1; outlook positive for May Day
G7 reaches deal to exit from coal by 2035
US, Britain urge Hamas to accept Israeli truce proposal
Saudi Arabia says economic revamp momentum intact as plans shift
German inflation creeps up to 2.4% in April