RBI keeps key rates unchanged in fifth bi-monthly monetary policy review

The Reserve bank of India (RBI) in its fifth bi-monthly monetary policy review for year 2016-17 has kept key rates unchanged. Decision in this regard was taken by RBI’s six-member Monetary Policy Committee (MPC) headed by Governor Urjit Patel. This decision ..

Month: Current Affairs - December, 2016

Negative Interest Rate Policy (NIRP)

In recent years, the a few central banks such as in Denmark, Sweden, Switzerland, European Union (EU) and recently in Japan have implemented the Negative Interest Rate Policy (NIRP) regimes in their jurisdictions in an attempt to raise economic growth ..

Constraints to Increase Pulse Production in India

In recent years, pulses have become the main drivers of food prices inflation in India. There are three reasons behind this: High demand-supply gap. The above data shows that despite being largest producer of pulses, India is dependent on import ..

Deficit Financing

Deficit refers to the difference between expenditure and receipts. In public finance, it means the government is spending more than what it is earning. Government expenditure and revenue can be split into capital and revenue. Capital expenditure generally includes those ..

RBI cuts SLR, releases Rs 60,000 crore

RBI slashed the Statutory Liquidity Ratio (SLR) by 1 percentage point from 24 % to 23 % which is expected to provide liquidity of around Rs 60, 000 crore. It kept the major indicative policy rates unchanged while it slashed ..

Month: Current Affairs - August, 2012

Producer Price Index (PPI): RBI proposes for PPI to measure inflation

The Governor of RBI, D. Subbarao has mooted for a Producer Price Index (PPI) to measure the average change over time in the sale prices of domestic goods and services. Currently, it uses Consumer Price Index (CPI) and Wholesale Price ..

Month: Current Affairs - July, 2012

Core inflation is a better indicator of price trends: RBI

According to RBI Governor, Core inflation is a better indicator of future price trends because of its less volatility. As per him an analysis of longer series of over three years shows that core inflation has statistically significant predictive power. ..

Month: Current Affairs - July, 2012

India displaying delayed effects of anti-inflation policies: Fitch

According to Global rating agency Fitch, India, China and Korea — three most powerful emerging Asian economies — are exhibiting delayed effects of tight monetary policies introduced in 2010-11 to tackle inflation. According to Fitch: Slow upgrading in financial position ..

Month: Current Affairs - July, 2012