CEA expresses hope that growth will be close to 8 per cent in 2015-16.
RBI Governor went against the views of four out of seven members in the TAC.
Economy stabilised, ‘significant improvement’ can be expected during the current fiscal, says Centre
Retail inflation has halved over the 19 months from double digit levels, giving the RBI scope to ease policy rates to help boost growth.
The central bank continues to misread the situation because it persists in using year-on-year data.
RBI misses an opportunity to cut rates. And risks a hardening of stance by the political establishment.
A waning supply shock in an environment of tepid demand affords RBI elbow room to wield the knife.
Wholesale Price Index (WPI) based inflation was (-)2.36 per cent in May. It has been in the negative zone since November 2014.
The government will release on Tuesday the data on wholesale price inflation, which had stayed in the negative zone for seven consecutive months.
The retail inflation measured in terms of Consumer Price Index (CPI) was at 5.01 per cent in May. The rate of price rise was at 6.77 per cent in June last year.
Monetary policy should take output into account directly, not switch focus to WPI.
Inflation in May last year was 6.18 per cent. The lower inflation comes amid a forecast of deficient monsoon this year.
In these unusual times, measures of inflation make monetary policy a fraught issue.
The external environment has had both a positive and negative effect on India’s economy.
Statistics and facts give the lie to P. Chidambaram’s ‘anecdotal evidence’ and stray remarks. If inflation had not fallen, and corruption continued, they would have figured at the top of his column.