There is some good news for Bangladesh struggling with surging inflation, falling import cover and a weak currency ahead of the country's January elections. The international monetary fund's board approved its first review of Bangladesh's $4.7 billion bailout package. Dhaka will get $689.8 million in funds to combat its economic crisis.

IMF approves bailout of Bangladesh | World Business Watch

In the coming week, central bankers, from Washington to Frankfurt to London and beyond, will make their final policy decision for the year. That comes at a time of apprehension about the direction the global inflation cycle is taking.

Global rate-cut standoff looms | World Business Watch

Egyptians began voting, on Sunday (Dec 10), in a presidential election overshadowed by the war in neighbouring Gaza between Israel and the Palestinian militant group Hamas while the incumbent President&nbsp;Abdel Fattah al-Sisi is poised to secure a third term in power. The polling began as the country grapples with one of the most severe financial crises in its recent history.&nbsp;

<h2>About the elections</h2>

The voting began at 9:00 am and will go on till 9:00 pm (local time) and will continue for the next three days. The results will be announced on December 18.&nbsp;

Voters lined up before the booths opened in Cairo, reported AFP, with patriotic songs playing on a loop amid heavy security. Riot police were deployed at entrances to Tahrir Square in the capital’s centre.&nbsp;

Around 67 million people are eligible to vote but given the low turnout in the previous elections, the government has ramped up efforts to urge voters to cast their ballots.

Sisi is poised to win a new six-year term while critics have called the election a sham after the government’s decade-long crackdown on dissent. However, the state media has called this election a step towards political pluralism.

There are three other candidates qualified to stand against the incumbent, but the only prominent figure who had the potential to give some competition to Sisi stepped down in October citing attacks against his supporters by officials and thugs. The accusations have since been dismissed by the national election authority.&nbsp;

“Of course people need to participate, but let’s be realistic: these elections are set for Sisi, because no one knows the other candidates,” a voter in her fifties told AFP on condition of anonymity.&nbsp;

Voters also said that they didn’t even know that the elections were happening, but noted that it would make very little difference. “I feel indifferent about the elections because there will be no real change,” Aya Mohamed, a 35-year-old marketing executive told Reuters.&nbsp;

<h2>Economic crisis, war in Gaza on minds</h2>

In 2013, Sisi, while serving as the army chief led the efforts to oust Egypt’s first democratically elected president, Mohamed Mursi of the Muslim Brotherhood, before winning the presidency the following year with 97 per cent of the vote.

Under Sisi’s rule, Egypt has jailed thousands of political dissenters as the crackdown swept up liberal and leftist activists as well as Islamists. However, the incumbent president and his supporters have argued that the crackdown was needed to stabilise Egypt and counter Islamist extremism.&nbsp;

Rights groups reportedly say tens of thousands have been jailed, this is even though around 1,000 people were freed after a presidential pardon in one year.&nbsp;

If Sisi wins, one of his priorities would also include preventing spillover from the war between Israel and Hamas.

Meanwhile, Egypt’s fast-growing population of 104 million is struggling to keep up with the rising inflation in the country.&nbsp;

Inflation has hovered near 40 per cent after the currency lost half its value and drove up the cost of imports, but even before the current crisis, millions of people were living on or below the poverty line.&nbsp;

A report by Reuters said voters were handed out bags containing flour, rice and other basic commodities after showing ink stains on their fingers indicating they had voted. However, some expressed disappointment that it did not include sugar recently subject to sharp price rises.

During Sisi’s rule, the national debt has tripled while the various mega-projects which are often led by the military fail to deliver on their benefits.&nbsp;

(With inputs from agencies)

Egyptians began voting, on Sunday (Dec 10), in a presidential election overshadowed by the war in neighbouring Gaza between Israel and the Palestinian militant group Hamas while the incumbent President Abdel Fattah al-Sisi is poised to secure a third term in power.

Egyptians began voting, on Sunday (Dec 10), in a presidential election overshadowed by the war in neighbouring Gaza between Israel and the Palestinian militant group Hamas while the incumbent President Abdel Fattah al-Sisi is poised to secure a third term in power. The polling began as the country grapples with one of the most severe financial crises in its recent history. About the elections The voting began at 9:00 am and will go on till 9:00 pm (local time) and will continue for the next three days. The results will be announced on December 18. Voters lined up before the booths opened in Cairo, reported AFP, with patriotic songs playing on a loop amid heavy security. Riot police were deployed at entrances to Tahrir Square in the capital’s centre. Around 67 million people are eligible to vote but given the low turnout in the previous elections, the government has ramped up efforts to urge voters to cast their ballots. Sisi is poised to win a new six-year term while critics have called the election a sham after the government’s decade-long crackdown on dissent. However, the state media has called this election a step towards political pluralism. There are three other candidates qualified to stand against the incumbent, but the only prominent figure who had the potential to give some competition to Sisi stepped down in October citing attacks against his supporters by officials and thugs. The accusations have since been dismissed by the national election authority. “Of course people need to participate, but let’s be realistic: these elections are set for Sisi, because no one knows the other candidates,” a voter in her fifties told AFP on condition of anonymity. Voters also said that they didn’t even know that the elections were happening, but noted that it would make very little difference. “I feel indifferent about the elections because there will be no real change,” Aya Mohamed, a 35-year-old marketing executive told Reuters. Economic crisis, war in Gaza on minds In 2013, Sisi, while serving as the army chief led the efforts to oust Egypt’s first democratically elected president, Mohamed Mursi of the Muslim Brotherhood, before winning the presidency the following year with 97 per cent of the vote. Under Sisi’s rule, Egypt has jailed thousands of political dissenters as the crackdown swept up liberal and leftist activists as well as Islamists. However, the incumbent president and his supporters have argued that the crackdown was needed to stabilise Egypt and counter Islamist extremism. Rights groups reportedly say tens of thousands have been jailed, this is even though around 1,000 people were freed after a presidential pardon in one year. If Sisi wins, one of his priorities would also include preventing spillover from the war between Israel and Hamas. Meanwhile, Egypt’s fast-growing population of 104 million is struggling to keep up with the rising inflation in the country. Inflation has hovered near 40 per cent after the currency lost half its value and drove up the cost of imports, but even before the current crisis, millions of people were living on or below the poverty line. A report by Reuters said voters were handed out bags containing flour, rice and other basic commodities after showing ink stains on their fingers indicating they had voted. However, some expressed disappointment that it did not include sugar recently subject to sharp price rises. During Sisi’s rule, the national debt has tripled while the various mega-projects which are often led by the military fail to deliver on their benefits. (With inputs from agencies)

Egyptians cast votes in elections held amid Israel-Hamas war with Sisi almost sure to win

Do you feel like everything you buy now comes at an exorbitant price just keeping your house running and it's burning a huge hole in your pocket? Inflation is to blame and so is Corporate greed and this greed is driving the prices up. It's called greed inflation.

Gravitas: How is greedflation affecting you?

In a notable economic development, Tokyo, Japan's capital, witnessed a slowdown in core consumer inflation in November, marking a shift in cost-push pressures within the country's economy. According to Reuters, the Tokyo core consumer price index (CPI), a crucial metric influencing nationwide trends, rose by 2.3 per cent year-on-year, slightly below the market's anticipated 2.4 per cent. <o:p></o:p>

This deceleration, compared to a 2.7 per cent increase in October, was influenced by moderating price hikes for food and a decrease in fuel costs. Government subsidies played a role in pushing down fuel expenses, contributing to the rate matching a low seen in July of the previous year.<o:p></o:p>

BOJ to analyse data for policy implications<o:p></o:p>

The Bank of Japan (BOJ) will scrutinise these figures as part of its considerations during a two-day policy meeting set to conclude on December 19. The Tokyo CPI serves as a leading indicator, offering valuable insights into economic trends and aiding the central bank in formulating its monetary policy. With inflation consistently surpassing the BOJ's 2 per cent target for over a year, market players are anticipating potential adjustments to the bank's massive stimulus, with some speculating on a shift as early as January.<o:p></o:p>

Factors behind the slowdown<o:p></o:p>

The decline in inflation can be attributed to factors such as government subsidies pushing down fuel costs and a moderation in the price increases of food items. The year-on-year rise of 2.3 per cent aligns with a low point observed in July of the preceding year, highlighting a potential shift in the economic landscape.<o:p></o:p>

BOJ's economic outlook<o:p></o:p>

The BOJ remains a pacifist outlier among global central banks, maintaining an ultra-loose policy even as counterparts elsewhere aggressively raised interest rates to combat inflation. The central bank's perspective emphasises the significance of rising wages and service costs as replacements for cost-push inflation. <o:p></o:p>

The "core core" index, excluding both fresh food and fuel prices, rose by 3.6 per cent in November from a year earlier, reinforcing the BOJ's belief that increasing wages and service costs will contribute to sustainable inflation meeting the bank's 2 per cent target. The service prices, marking the fastest pace since 1994, rose by 3.0 per cent in November from a year earlier, indicating potential positive shifts in labour costs.<o:p></o:p>

Market expectations and speculations<o:p></o:p>

With inflation consistently exceeding the BOJ's 2 per cent target for an extended period, market players are anticipating potential adjustments to the bank's stimulus measures. There's a growing expectation that the BOJ might phase out its massive stimulus in the coming year, with speculations ranging from a shift as early as January. This anticipation aligns with the global trend of central banks adjusting their policies to address inflationary pressures.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

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In a notable economic development, Tokyo, Japan's capital, witnessed a slowdown in core consumer inflation in November, marking a shift in cost-push pressures within the country's economy.

In a notable economic development, Tokyo, Japan's capital, witnessed a slowdown in core consumer inflation in November, marking a shift in cost-push pressures within the country's economy. According to Reuters, the Tokyo core consumer price index (CPI), a crucial metric influencing nationwide trends, rose by 2.3 per cent year-on-year, slightly below the market's anticipated 2.4 per cent. This deceleration, compared to a 2.7 per cent increase in October, was influenced by moderating price hikes for food and a decrease in fuel costs. Government subsidies played a role in pushing down fuel expenses, contributing to the rate matching a low seen in July of the previous year. BOJ to analyse data for policy implications The Bank of Japan (BOJ) will scrutinise these figures as part of its considerations during a two-day policy meeting set to conclude on December 19. The Tokyo CPI serves as a leading indicator, offering valuable insights into economic trends and aiding the central bank in formulating its monetary policy. With inflation consistently surpassing the BOJ's 2 per cent target for over a year, market players are anticipating potential adjustments to the bank's massive stimulus, with some speculating on a shift as early as January. Factors behind the slowdown The decline in inflation can be attributed to factors such as government subsidies pushing down fuel costs and a moderation in the price increases of food items. The year-on-year rise of 2.3 per cent aligns with a low point observed in July of the preceding year, highlighting a potential shift in the economic landscape. BOJ's economic outlook The BOJ remains a pacifist outlier among global central banks, maintaining an ultra-loose policy even as counterparts elsewhere aggressively raised interest rates to combat inflation. The central bank's perspective emphasises the significance of rising wages and service costs as replacements for cost-push inflation. The "core core" index, excluding both fresh food and fuel prices, rose by 3.6 per cent in November from a year earlier, reinforcing the BOJ's belief that increasing wages and service costs will contribute to sustainable inflation meeting the bank's 2 per cent target. The service prices, marking the fastest pace since 1994, rose by 3.0 per cent in November from a year earlier, indicating potential positive shifts in labour costs. Market expectations and speculations With inflation consistently exceeding the BOJ's 2 per cent target for an extended period, market players are anticipating potential adjustments to the bank's stimulus measures. There's a growing expectation that the BOJ might phase out its massive stimulus in the coming year, with speculations ranging from a shift as early as January. This anticipation aligns with the global trend of central banks adjusting their policies to address inflationary pressures. (With inputs from Reuters) WATCH WION LIVE HERE

Tokyo's Inflation Slows: BOJ faces decisive policy crossroads amid economic shifts

Political dynamics are fast changing ahead of the upcoming February 2024 general elections as former Pakistani President, Asif Zardari remarks on remarks on Bilawal saying he is 'not fully trained' for politics

Pakistan: Bilawal not fully trained, says Asif Ali Zardari

Western diplomats and the UN have criticized Pakistan's move to charge hundreds of dollars in exit fees to each Afghan refugee who left the Taliban's persecution, calling it "shocking and frustrating."

Gravitas: Pakistan imposes $830 exit permit on refugees

Pakistan where the ground is ready for the next general elections and so are the candidates taking a dig at their rival candidates. Pakistan People's Party chairman Bilawal Bhutto Zardari recently said that the country should give a chance to someone new instead of choosing the same prime minister for the second time.

Pakistan: PTI, PPP accuses Kakkar government of bias

The latest bulletin by India's central bank offers a mixed about the state of India's economy. The Reserve Bank of India's monthly bulletin said that while consumer demand has been upbeat, a lot needs to be done on the inflation front.

RBI's forecast on growth & inflation | World Business Watch

The Reserve Bank of India (RBI), in its November bulletin released on Thursday, cautioned that while there has been a welcome relief in retail inflation over the past two months, India is "not out of the woods yet".&nbsp;

The report&nbsp;called the&nbsp;readings of around 5 per cent and 4.9 per cent in September and October, respectively,&nbsp;a relief from the higher average inflation rates recorded earlier in the year. However, it emphasised the need for continued vigilance, acknowledging that there still are challenges ahead despite the recent positive developments.

India's annual retail inflation eased to a four-month low of 4.87 per cent in October, a positive trend that the RBI acknowledged but noted that it remained above the central bank's 4 per cent target. The RBI expects inflation to average 5.4 per cent in the fiscal year 2023-24.

The discussion&nbsp;highlighted high-frequency food price data, indicating further increases in cereal and pulse prices, while edible oil prices continued to decline. The central bank remains watchful of these factors as they contribute to overall inflationary pressures.

Despite the inflation challenges, the RBI report 'State of the Economy' appointed to several robust economic fundamentals. India's growth, it noted, continues to rely on strong domestic demand, providing a buffer against external shocks. The country's external sector is considered viable, supported by a modest current account deficit, resilient capital flows, a stable currency, and healthy foreign exchange reserves.

The economic growth trajectory of India has shown positive momentum, with the central bank noting that the change in gross domestic product is expected to be sequentially higher in October-December due to "ebullient" festival demand. Investment demand also appears to be resilient, supported by the government's infrastructure spending, an uptick in private capital expenditure, and advancements in digitalisation.

In terms of monetary policy, the RBI highlighted the calibrated normalisation of surplus liquidity and robust credit growth during the current tightening phase. However, the transmission of rates is still not complete. The bulletin mentioned that while the transmission to term deposits has been robust, savings deposit rates have exhibited "rigidity," indicating a need for further adjustments in certain segments of the financial market to enhance the effectiveness of monetary policy measures.

(With inputs from Reuters)

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The Reserve Bank of India (RBI), in its November bulletin released on Thursday, cautioned that while there has been a welcome relief in retail inflation over the past two months, India is "not out of the woods yet".

The Reserve Bank of India (RBI), in its November bulletin released on Thursday, cautioned that while there has been a welcome relief in retail inflation over the past two months, India is "not out of the woods yet". The report called the readings of around 5 per cent and 4.9 per cent in September and October, respectively, a relief from the higher average inflation rates recorded earlier in the year. However, it emphasised the need for continued vigilance, acknowledging that there still are challenges ahead despite the recent positive developments. India's annual retail inflation eased to a four-month low of 4.87 per cent in October, a positive trend that the RBI acknowledged but noted that it remained above the central bank's 4 per cent target. The RBI expects inflation to average 5.4 per cent in the fiscal year 2023-24. The discussion highlighted high-frequency food price data, indicating further increases in cereal and pulse prices, while edible oil prices continued to decline. The central bank remains watchful of these factors as they contribute to overall inflationary pressures. Despite the inflation challenges, the RBI report 'State of the Economy' appointed to several robust economic fundamentals. India's growth, it noted, continues to rely on strong domestic demand, providing a buffer against external shocks. The country's external sector is considered viable, supported by a modest current account deficit, resilient capital flows, a stable currency, and healthy foreign exchange reserves. The economic growth trajectory of India has shown positive momentum, with the central bank noting that the change in gross domestic product is expected to be sequentially higher in October-December due to "ebullient" festival demand. Investment demand also appears to be resilient, supported by the government's infrastructure spending, an uptick in private capital expenditure, and advancements in digitalisation. In terms of monetary policy, the RBI highlighted the calibrated normalisation of surplus liquidity and robust credit growth during the current tightening phase. However, the transmission of rates is still not complete. The bulletin mentioned that while the transmission to term deposits has been robust, savings deposit rates have exhibited "rigidity," indicating a need for further adjustments in certain segments of the financial market to enhance the effectiveness of monetary policy measures. (With inputs from Reuters) WATCH WION LIVE HERE

RBI bulletin highlights inflation challenge despite boost in consumption

In this ever-evolving realm of global economics, few challenges are as formidable as inflation impacting nation's economies and our daily lives.

India: Retail down to 5.02% in September 2023

India's retail inflation experienced a downturn in October, reaching a four-month low and moving closer to the central bank's targeted 4 per cent, a level deemed necessary before considering interest rate reductions, Reuters reported. &nbsp;

The annual retail inflation rate decreased to 4.87 per cent in October, down from 5.02 per cent in the preceding month, aligning with the forecast of 4.80 per cent from a Reuters poll of 53 economists. Factors such as lower core inflation, excluding volatile food and energy prices, and a supportive base effect have contributed to the decline. &nbsp;

Although core inflation statistics are not publicly released by the Indian government, core inflation was projected to be between 4.20 and 4.28 percent, down from 4.5 per cent in September.&nbsp;

The food inflation component, constituting nearly half of the overall consumer price basket, remained relatively stable at 6.61 per cent in October, only slightly changed from an upwardly revised 6.62 per cent in September. October's inflation rate fell below the upper tolerance band of 2-6 per cent set by the Reserve Bank of India (RBI) for the second consecutive month. &nbsp;

Despite the apparent stability in inflation, analysts advocate a cautious approach. Reuters cited RBI Governor Shaktikanta Das, who, in a recent statement, highlighted the risks associated with potential spikes in food prices, considering India's susceptibility to recurrent and overlapping food price shocks.&nbsp;

While the recent data release indicates consistent inflation levels, economists, such as Madan Sabnavis from Bank of Baroda, recommend a cautious approach given the historical volatility in foodgrain prices, particularly driven by factors like an uneven monsoon. &nbsp;

The prices of key commodities like vegetables, milk, and cereals have demonstrated volatility and played a pivotal role in shaping India's inflation trends. &nbsp;

Aditi Nayar, an economist at ICRA, noted that while the uneven monsoon has contributed to the uptick in foodgrain prices in October, the higher prices of specific vegetables, such as onions, may be mitigated by the typical seasonal downtrend in other vegetables, providing some relief.&nbsp;

Predictions for the Consumer Price Index (CPI) inflation in the coming months suggest a climb to 5.6 per cent by December 2023. The inflation rate is anticipated to remain within a range of 4.9-5.6 per cent for the subsequent two quarters, according to Aditi Nayar. &nbsp;

In response to the surge in inflation observed in July, exceeding 7 per cent, India has implemented various measures to curb rising prices, including export bans on rice, wheat, sugar, and tightened restrictions on onion exports.&nbsp;

(With inputs from Reuters)&nbsp;

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India's retail inflation experienced a downturn in October, reaching a four-month low and moving closer to the central bank's targeted 4 per cent, a level deemed necessary before considering interest rate reductions, Reuters reported.

India's retail inflation experienced a downturn in October, reaching a four-month low and moving closer to the central bank's targeted 4 per cent, a level deemed necessary before considering interest rate reductions, Reuters reported. The annual retail inflation rate decreased to 4.87 per cent in October, down from 5.02 per cent in the preceding month, aligning with the forecast of 4.80 per cent from a Reuters poll of 53 economists. Factors such as lower core inflation, excluding volatile food and energy prices, and a supportive base effect have contributed to the decline. Although core inflation statistics are not publicly released by the Indian government, core inflation was projected to be between 4.20 and 4.28 percent, down from 4.5 per cent in September. The food inflation component, constituting nearly half of the overall consumer price basket, remained relatively stable at 6.61 per cent in October, only slightly changed from an upwardly revised 6.62 per cent in September. October's inflation rate fell below the upper tolerance band of 2-6 per cent set by the Reserve Bank of India (RBI) for the second consecutive month. Despite the apparent stability in inflation, analysts advocate a cautious approach. Reuters cited RBI Governor Shaktikanta Das, who, in a recent statement, highlighted the risks associated with potential spikes in food prices, considering India's susceptibility to recurrent and overlapping food price shocks. While the recent data release indicates consistent inflation levels, economists, such as Madan Sabnavis from Bank of Baroda, recommend a cautious approach given the historical volatility in foodgrain prices, particularly driven by factors like an uneven monsoon. The prices of key commodities like vegetables, milk, and cereals have demonstrated volatility and played a pivotal role in shaping India's inflation trends. Aditi Nayar, an economist at ICRA, noted that while the uneven monsoon has contributed to the uptick in foodgrain prices in October, the higher prices of specific vegetables, such as onions, may be mitigated by the typical seasonal downtrend in other vegetables, providing some relief. Predictions for the Consumer Price Index (CPI) inflation in the coming months suggest a climb to 5.6 per cent by December 2023. The inflation rate is anticipated to remain within a range of 4.9-5.6 per cent for the subsequent two quarters, according to Aditi Nayar. In response to the surge in inflation observed in July, exceeding 7 per cent, India has implemented various measures to curb rising prices, including export bans on rice, wheat, sugar, and tightened restrictions on onion exports. (With inputs from Reuters) WATCH WION LIVE HERE

India's retail inflation hits four-month low in October, nearing RBI's target 

The pace of India's consumer price inflation is anticipated to have eased to a four-month low of 4.80 per cent in October, nearing the Reserve Bank of India's 4 per cent medium-term target, a Reuters poll revealed on Thursday. &nbsp;

The poll, conducted from November 6-9 with 53 economists, suggested a slowdown from the 5.02 per cent rate recorded in September. Volatile food prices, constituting about half of the consumer price index (CPI) basket, are expected to have moderated after a spike in July and August. &nbsp;

However, despite this overall moderation, onion prices, a staple in Indian cooking, continue to rise sharply, adding a layer of complexity to the inflation dynamics.&nbsp;

"I'm expecting a further slide in inflation in October, thanks primarily to a continued moderation in food inflation. Underlying our forecast is a fall in food and beverage inflation to below 6 per cent," Reuters quoted Miguel Chanco, Chief Emerging Asia Economist at Pantheon Macroeconomics as saying. &nbsp;

Chanco further noted, "Beyond October, I wouldn't be surprised if there is some stickiness in the headline rate, particularly if the ongoing increase in onion prices persists. But stickiness is very different from a surge, and I don't expect any breach of the target range in the foreseeable future."&nbsp;

While the slowing pace of price increases may offer some relief to the Reserve Bank of India (RBI), achieving its mandate to anchor inflation to the 4 per cent mid-point target remains a distant prospect. The central bank is anticipated to maintain its key policy rate at 6.50 per cent at least until the end of June 2024, followed by a 25 basis points cut in the subsequent quarter, as indicated by a separate Reuters survey. &nbsp;

The projection suggests that headline inflation may not return to the RBI's mid-point target until at least the second half of 2025.&nbsp;

"Inflation is expected to have a choppy ride in the months ahead... Passage of base effects and a sharper rise in selected vegetable prices are likely to take the headline back above 5 per cent this quarter and keep in that territory into 1Q24," Reuters cited Radhika Rao, a Senior Economist at DBS Bank.&nbsp;

She emphasised the cautious stance of the central bank on the inflation outlook, suggesting a likelihood of an extended pause before considering any change in policy direction.&nbsp;

(With inputs from Reuters)

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The pace of India's consumer price inflation is anticipated to have eased to a four-month low of 4.80 per cent in October, nearing the Reserve Bank of India's 4 per cent medium-term target, a Reuters poll revealed on Thursday.

The pace of India's consumer price inflation is anticipated to have eased to a four-month low of 4.80 per cent in October, nearing the Reserve Bank of India's 4 per cent medium-term target, a Reuters poll revealed on Thursday. The poll, conducted from November 6-9 with 53 economists, suggested a slowdown from the 5.02 per cent rate recorded in September. Volatile food prices, constituting about half of the consumer price index (CPI) basket, are expected to have moderated after a spike in July and August. However, despite this overall moderation, onion prices, a staple in Indian cooking, continue to rise sharply, adding a layer of complexity to the inflation dynamics. "I'm expecting a further slide in inflation in October, thanks primarily to a continued moderation in food inflation. Underlying our forecast is a fall in food and beverage inflation to below 6 per cent," Reuters quoted Miguel Chanco, Chief Emerging Asia Economist at Pantheon Macroeconomics as saying. Chanco further noted, "Beyond October, I wouldn't be surprised if there is some stickiness in the headline rate, particularly if the ongoing increase in onion prices persists. But stickiness is very different from a surge, and I don't expect any breach of the target range in the foreseeable future." While the slowing pace of price increases may offer some relief to the Reserve Bank of India (RBI), achieving its mandate to anchor inflation to the 4 per cent mid-point target remains a distant prospect. The central bank is anticipated to maintain its key policy rate at 6.50 per cent at least until the end of June 2024, followed by a 25 basis points cut in the subsequent quarter, as indicated by a separate Reuters survey. The projection suggests that headline inflation may not return to the RBI's mid-point target until at least the second half of 2025. "Inflation is expected to have a choppy ride in the months ahead... Passage of base effects and a sharper rise in selected vegetable prices are likely to take the headline back above 5 per cent this quarter and keep in that territory into 1Q24," Reuters cited Radhika Rao, a Senior Economist at DBS Bank. She emphasised the cautious stance of the central bank on the inflation outlook, suggesting a likelihood of an extended pause before considering any change in policy direction. (With inputs from Reuters) WATCH WION LIVE HERE

India inflation likely to ease to four-month low in October, says Reuters poll 

We delve into the key factors that can make or break your retirement dreams. From life expectancy to inflation, we'll unravel the intricacies of securing your financial future. Plus, we'll share strategies to maximise your retirement savings and offer tips on being your own financial advisor.

Is $3 million enough to retire? | World Business Watch

Pakistan citizens are facing difficulty securing new passports, because of the scarcity of lamination paper in the country. The delays in securing passports add to the woes of citizens wanting to travel abroad for study, work or leisure.

Gravitas: Pakistan's Massive Passports Backlog as It Runs Out of Lamination Paper

King Charles III of the United Kingdom has delivered his first opening address to Parliament since ascending to the throne, outlining the government's policy priorities in areas ranging from the economy to foreign policy and criminal justice.

UK: Charles III gives 1st speech as King in Houses of Parliament, promises govt to control inflation

The non-oil sector in Saudi Arabia had its greatest employment growth in nine years in October as the world's largest crude exporter looks to diversify.

Saudi Arabia's non-oil economy shows resilience in October | World Business Watch

Pakistan Elections: The Election Commission of Pakistan's counsel said the process of drawing constituencies would be completed by January 29, paving the way for the polls.

Race To Power: Election Commission of Pakistan shares poll timeline with Supreme Court

Japanese Prime Minister Fumio Kishida unveiled a comprehensive&nbsp;$113 billion&nbsp;economic package, aimed at controlling the effects of surging inflation.

The proposed package encompasses various strategies, including temporary cuts to income and residential taxes, along with subsidies intended to alleviate the burdens of escalating gasoline and utility bills.&nbsp;

According to Reuters, the government plans to compile a supplementary budget of 13.1 trillion yen for the ongoing fiscal year in order to&nbsp;finance a significant portion of the expenditure.&nbsp;

The prolonged period during which inflation has consistently exceeded the central bank's two per cent target has been taking a toll on consumer spending and casting a shadow on Japan's economic recovery.&nbsp;

The ever-increasing cost of living has played a pivotal role in driving down Kishida's approval ratings, putting immense pressure on him to alleviate the hardships faced by households. &nbsp;

While the prime minister acknowledges that economic growth remains strong, wage increases have been insufficient to counterbalance the surge in prices. As a solution, he envisions returning a portion of the expected increase in tax revenues generated by the robust economy back to households, effectively cushioning the impact of inflation.&nbsp;

The latest move comes close on heels of the Bank of Japan allowing 10-year government bond yields to rise above 1 per cent, in response to the yen's weakening over the previous 18 months.&nbsp;

(With inputs from Reuters)&nbsp;

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Japanese Prime Minister Fumio Kishida unveiled a comprehensive $113 billion economic package, aimed at controlling the effects of surging inflation. The proposed package encompasses various strategies, including temporary cuts to income and residential taxes, along with subsidies intended to alleviate the burdens of escalating gasoline and utility bills.

Japanese Prime Minister Fumio Kishida unveiled a comprehensive $113 billion economic package, aimed at controlling the effects of surging inflation. The proposed package encompasses various strategies, including temporary cuts to income and residential taxes, along with subsidies intended to alleviate the burdens of escalating gasoline and utility bills. According to Reuters, the government plans to compile a supplementary budget of 13.1 trillion yen for the ongoing fiscal year in order to finance a significant portion of the expenditure. The prolonged period during which inflation has consistently exceeded the central bank's two per cent target has been taking a toll on consumer spending and casting a shadow on Japan's economic recovery. The ever-increasing cost of living has played a pivotal role in driving down Kishida's approval ratings, putting immense pressure on him to alleviate the hardships faced by households. While the prime minister acknowledges that economic growth remains strong, wage increases have been insufficient to counterbalance the surge in prices. As a solution, he envisions returning a portion of the expected increase in tax revenues generated by the robust economy back to households, effectively cushioning the impact of inflation. The latest move comes close on heels of the Bank of Japan allowing 10-year government bond yields to rise above 1 per cent, in response to the yen's weakening over the previous 18 months. (With inputs from Reuters) WATCH WION LIVE HERE

Japan announces $113 bn package to counter inflation woes 

In a bid to curb their rising prices, the Indian government has set a floor price on the exports of onions. Media reports suggest that the minimum export price for onions has been kept at 800 dollars per tonne till the end of 2023.

Govt sets minimum export prices for onions at $800 per tonne

After notifying the federal government and the Election Commission, the Supreme Court on Monday postponed the election case until November 2. While considering various petitions regarding the postponement of general elections for longer than ninety days, Chief Justice Qazi Faez Isa noted that it was "not possible" to satisfy the ninety-day limit.

Pakistan Top Court adjourns election delay case until November 2

During an election year in Argentina, it can be difficult to concentrate on anything other than economics. The severe financial prognosis has once again dominated this year's presidential campaign, with an annual inflation rate that has surpassed 138 percent and a currency that has experienced a sharp decline in value.

Argentina Presidential Polls: Economic situation dire

Inflation in Argentina has jumped to its highest level in three decades, just a week before the country elects its new president. Compared to a year ago, inflation has accelerated to 138.3%. That's the highest level since the early 1990s when Argentina was exiting hyperinflation.

Record high inflation in Argentina

India's retail inflation has seen a dip, reaching a three-month low in September, primarily due to softer vegetable prices. However, it still remains above the Reserve Bank of India's (RBI) target of 4 per cent, which the central bank has emphasised as crucial before considering a rate cut.

According to official data, the annual retail inflation, measured by the Consumer Price Index, registered at 5.02 per cent in September, down from the previous month's 6.83 per cent. This figure was also lower than the expectations of a Reuters poll, which had forecasted a rate of 5.50 per cent. In June, retail inflation had stood at 4.81 per cent.

Food inflation, a major contributor to the overall consumer price basket, recorded a notable decrease from 9.94 per cent in August to 6.56 per cent in September. These numbers were encouraging but remained above the upper tolerance band of 2 per cent-6 per cent set by the RBI.

Vegetable prices, which had been a significant driver of inflation in recent months, saw a substantial reduction, dropping to 3.39 per cent in September from 26.14 per cent in the previous month. Similarly, cereal inflation also eased from 11.85 per cent in August to 10.95 per cent in September.

"The central bank is unlikely to shift away from its hawkish rhetoric for as long as there remains a significant risk of a renewed pick-up in food prices," Reuters quoted Thamashi De Silva of Capital Economics as saying. She further noted that despite the drop in headline inflation, the threat of food inflation persisted due to India's dry monsoon season.

In response to rising prices, the Indian government increased the cooking gas subsidy for low-income households from 200 rupees per cylinder in August to 300 rupees in an effort to mitigate inflation.

Reuters cited Finance Minister Nirmala Sitharaman, who also voiced concerns about global and regional uncertainties, stating that they might keep inflationary pressures elevated in the coming months. She emphasized the government's pre-emptive measures to control food inflation and their potential to alleviate price pressures in the market.

Core inflation, which excludes volatile food and energy prices, was estimated at 4.5 per cent in September, a slight decrease from 4.6 per cent-4.9 per cent in August, as per two economists, though the Indian government does not officially release core inflation figures.

However, there are still concerns about rising oil prices, hovering above $85 a barrel, and the recent Israeli-Palestinian conflict, which could further impact energy prices and overall inflation.

Madan Sabnavis, an economist at the Bank of Baroda, told Reuters that the RBI would closely monitor the impact of the El Nino weather phenomenon on crop output in Asia and the evolving situation in the Middle East to make future decisions on interest rates.

Meanwhile, prices for some food items like pulses and spices continued to rise, posing a challenge for inflation control. The RBI is expected to maintain its repo rate unchanged until June 2024, Sabnavis predicted.

(Inputs from Reuters)

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India's retail inflation has seen a dip, reaching a three-month low in September, primarily due to softer vegetable prices. However, it still remains above the Reserve Bank of India's (RBI) target of 4 per cent, which the central bank has emphasised as crucial before considering a rate cut.

India's retail inflation has seen a dip, reaching a three-month low in September, primarily due to softer vegetable prices. However, it still remains above the Reserve Bank of India's (RBI) target of 4 per cent, which the central bank has emphasised as crucial before considering a rate cut. According to official data, the annual retail inflation, measured by the Consumer Price Index, registered at 5.02 per cent in September, down from the previous month's 6.83 per cent. This figure was also lower than the expectations of a Reuters poll, which had forecasted a rate of 5.50 per cent. In June, retail inflation had stood at 4.81 per cent. Food inflation, a major contributor to the overall consumer price basket, recorded a notable decrease from 9.94 per cent in August to 6.56 per cent in September. These numbers were encouraging but remained above the upper tolerance band of 2 per cent-6 per cent set by the RBI. Vegetable prices, which had been a significant driver of inflation in recent months, saw a substantial reduction, dropping to 3.39 per cent in September from 26.14 per cent in the previous month. Similarly, cereal inflation also eased from 11.85 per cent in August to 10.95 per cent in September. "The central bank is unlikely to shift away from its hawkish rhetoric for as long as there remains a significant risk of a renewed pick-up in food prices," Reuters quoted Thamashi De Silva of Capital Economics as saying. She further noted that despite the drop in headline inflation, the threat of food inflation persisted due to India's dry monsoon season. In response to rising prices, the Indian government increased the cooking gas subsidy for low-income households from 200 rupees per cylinder in August to 300 rupees in an effort to mitigate inflation. Reuters cited Finance Minister Nirmala Sitharaman, who also voiced concerns about global and regional uncertainties, stating that they might keep inflationary pressures elevated in the coming months. She emphasized the government's pre-emptive measures to control food inflation and their potential to alleviate price pressures in the market. Core inflation, which excludes volatile food and energy prices, was estimated at 4.5 per cent in September, a slight decrease from 4.6 per cent-4.9 per cent in August, as per two economists, though the Indian government does not officially release core inflation figures. However, there are still concerns about rising oil prices, hovering above $85 a barrel, and the recent Israeli-Palestinian conflict, which could further impact energy prices and overall inflation. Madan Sabnavis, an economist at the Bank of Baroda, told Reuters that the RBI would closely monitor the impact of the El Nino weather phenomenon on crop output in Asia and the evolving situation in the Middle East to make future decisions on interest rates. Meanwhile, prices for some food items like pulses and spices continued to rise, posing a challenge for inflation control. The RBI is expected to maintain its repo rate unchanged until June 2024, Sabnavis predicted. (Inputs from Reuters) WATCH WION LIVE HERE

India's retail inflation drops to three-month low in September: Report

India's retail inflation has taken a welcome dip, falling from 6.83% in August to 5.02% in September. The drop can be attributed to a substantial easing in food prices, which had surged to nearly 10% in the previous month.

India inflation dips tp 5.02% | India's retail inflation sees significant September dip | WION

European Central Bank (ECB) President Christine Lagarde has voiced confidence in the ECB's ability to achieve its target of bringing inflation back down to 2 per cent. In an interview with French newspaper La Tribune Dimanche, Lagarde also expressed optimism regarding Europe's gas reserves situation, citing various factors contributing to her positive outlook.

Last month, the ECB implemented a record-high key interest rate of 4 per cent, signalling a strong commitment to addressing inflationary pressures. Lagarde emphasised that the sustained levels of the key ECB interest rates would play a crucial role in facilitating the timely return of inflation to the desired target.

"The key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target," Reuters quoted Lagarde as saying during the interview conducted on October 2.

Despite acknowledging that inflation was currently on a significant downward trajectory, Lagarde remained optimistic about the short-term economic outlook. She cited several reasons for her confidence, including ongoing economic reforms taking place in Europe and notable improvements in the region's gas reserves situation.

Lagarde highlighted the importance of structural reforms being implemented in the European economy, underscoring the positive impact they could have on future economic performance.

In addition, she drew attention to the remarkable progress made in replenishing gas reserves, surpassing 90 per cent by September 2023. This development has bolstered Europe's preparedness for the upcoming winter season, providing a sense of confidence and security.

"This allows us to look towards the coming winter, if not calmly, then at least with a lot more confidence," Reuters noted Lagarde’s concluding remarks, emphasising the improved outlook for Europe's gas reserves situation.

(With inputs from Reuters)

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European Central Bank (ECB) President Christine Lagarde has voiced confidence in the ECB's ability to achieve its target of bringing inflation back down to 2 per cent.

European Central Bank (ECB) President Christine Lagarde has voiced confidence in the ECB's ability to achieve its target of bringing inflation back down to 2 per cent. In an interview with French newspaper La Tribune Dimanche, Lagarde also expressed optimism regarding Europe's gas reserves situation, citing various factors contributing to her positive outlook. Last month, the ECB implemented a record-high key interest rate of 4 per cent, signalling a strong commitment to addressing inflationary pressures. Lagarde emphasised that the sustained levels of the key ECB interest rates would play a crucial role in facilitating the timely return of inflation to the desired target. "The key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target," Reuters quoted Lagarde as saying during the interview conducted on October 2. Despite acknowledging that inflation was currently on a significant downward trajectory, Lagarde remained optimistic about the short-term economic outlook. She cited several reasons for her confidence, including ongoing economic reforms taking place in Europe and notable improvements in the region's gas reserves situation. Lagarde highlighted the importance of structural reforms being implemented in the European economy, underscoring the positive impact they could have on future economic performance. In addition, she drew attention to the remarkable progress made in replenishing gas reserves, surpassing 90 per cent by September 2023. This development has bolstered Europe's preparedness for the upcoming winter season, providing a sense of confidence and security. "This allows us to look towards the coming winter, if not calmly, then at least with a lot more confidence," Reuters noted Lagarde’s concluding remarks, emphasising the improved outlook for Europe's gas reserves situation. (With inputs from Reuters) WATCH WION LIVE HERE

ECB's Lagarde expresses confidence in 2pc inflation target and Europe's gas reserves

The Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday that the monetary policy committee (MPC) has opted to maintain the policy repo rate at 6.50 per cent, marking the fourth consecutive time the rate remains unchanged.

In his policy statement, The Indian Express quoted Das as saying, "After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, RBI's Monetary Policy Committee decided unanimously to keep the Policy Repo Rate unchanged at 6.5 per cent."

He emphasised the importance of both macroeconomic stability and inclusive growth, asserting that the combination of policies implemented in recent years, despite facing numerous and unprecedented challenges, had contributed to the achievement of stability in both macroeconomics and finance.

Das noted that India has transitioned from the twin balance sheet stress of a decade ago to a twin balance sheet advantage, with both banks and corporate demonstrating healthier financial positions.

Reacting to the RBI's decision to continue with the rate pause, Adhil Shetty, CEO of Bankbazaar.com, said, "The Reserve Bank of India expectedly kept the policy rates paused in its monetary policy review for October.&nbsp;This is welcome, although inflation is expected to remain elevated for longer than anticipated."

According to Shetty, interest rates and inflation are moving in a positive direction with limited upward risks. Additionally, he noted that the central bank intends to maintain control over growth expectations through various monetary policy tools.

This decision comes as the RBI continues to grapple with keeping retail inflation within the target of 4 per cent. While India's retail inflation eased to 6.83 per cent in August, Das acknowledged that it remains above the upper limit of RBI's tolerance band, highlighting concerns about inflation.

While the RBI governor anticipates a potential easing of retail inflation in September, the decline in kharif sowing poses a potential threat. The RBI has maintained its CPI-based inflation forecast for FY24 at 5.4 per cent.

In terms of GDP, the RBI has retained its forecast, expecting real gross domestic product (GDP) to grow at 6.5 per cent for the fiscal year 2023-24 (FY24).

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The Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday that the monetary policy committee (MPC) has opted to maintain the policy repo rate at 6.

The Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday that the monetary policy committee (MPC) has opted to maintain the policy repo rate at 6.50 per cent, marking the fourth consecutive time the rate remains unchanged. In his policy statement, The Indian Express quoted Das as saying, "After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, RBI's Monetary Policy Committee decided unanimously to keep the Policy Repo Rate unchanged at 6.5 per cent." He emphasised the importance of both macroeconomic stability and inclusive growth, asserting that the combination of policies implemented in recent years, despite facing numerous and unprecedented challenges, had contributed to the achievement of stability in both macroeconomics and finance. Das noted that India has transitioned from the twin balance sheet stress of a decade ago to a twin balance sheet advantage, with both banks and corporate demonstrating healthier financial positions. Reacting to the RBI's decision to continue with the rate pause, Adhil Shetty, CEO of Bankbazaar.com, said, "The Reserve Bank of India expectedly kept the policy rates paused in its monetary policy review for October. This is welcome, although inflation is expected to remain elevated for longer than anticipated." According to Shetty, interest rates and inflation are moving in a positive direction with limited upward risks. Additionally, he noted that the central bank intends to maintain control over growth expectations through various monetary policy tools. This decision comes as the RBI continues to grapple with keeping retail inflation within the target of 4 per cent. While India's retail inflation eased to 6.83 per cent in August, Das acknowledged that it remains above the upper limit of RBI's tolerance band, highlighting concerns about inflation. While the RBI governor anticipates a potential easing of retail inflation in September, the decline in kharif sowing poses a potential threat. The RBI has maintained its CPI-based inflation forecast for FY24 at 5.4 per cent. In terms of GDP, the RBI has retained its forecast, expecting real gross domestic product (GDP) to grow at 6.5 per cent for the fiscal year 2023-24 (FY24). WATCH WION LIVE HERE

RBI holds repo rate steady at 6.5 per cent for the fourth time, inflation remains a concern

Latest data suggests that inflation in the Euro zone fell to its lowest level in two years in September. Consumer prices in the euro zone rose by 4.3% in September, the slowest pace since October 2021, from 5.2% in august.

Big fall in Euro zone inflation

Takehiko Nakao, the former Asian Development Bank chief, has raised concerns about the Japanese yen's declining value, suggesting that Japan may need to intervene in the currency market again. Nakao also called for the Bank of Japan (BOJ) to reconsider its ultra-easy monetary policy.

In a recent interaction with Reuters, Nakao spoke about the risks associated with prolonged monetary easing, highlighting the need for a possible policy modification.

Reuters quoted Nakao as saying, "There may be views that the intervention is not imminent as the depreciation has not been so rapid compared to the last time when authorities intervened in September/October. But it's fully possible the authorities will conduct intervention in case the yen weakens further."

In the face of a weakening yen, Japan has spent over 9 trillion yen last year to stabilise the currency. The yen, currently trading around 147.77 against the dollar, has been a cause for concern, as a weaker yen can negatively impact Japan's exports and create economic instability.

Takehiko Nakao, who worked as the top currency official from August 2011 to March 2013, supervised a significant intervention in 2011 to control the yen’s strength in response to the U.S. Federal Reserve's quantitative easing. However, now that the yen is considerably weaker, Japan faces different economic challenges, such as rising import prices and increased living costs.

Nakao's concerns are echoed by investors who view prolonged monetary easing as distorting markets and hurting bank profits. A weaker yen has emerged as a result of Japan's contrast with the global trend of monetary control. Other major central banks, such as the Federal Reserve, have hiked interest rates to fight off inflation while the BOJ continues to undertake potent monetary stimulus measures.

As the BOJ concludes its two-day meeting this week, it is widely expected to maintain its yield curve control (YCC) targets at a negative 0.1 per cent for short-term interest rates and 0 per cent for the 10-year bond yield. However, Nakao, who is in talks with present policymakers, argues for a change in direction.

"In the face of ongoing headline inflation and an excessively weak yen, the BOJ may have no choice but to proceed with monetary policy normalisation, including an exit from negative rate policy and yield curve control, so as not to fall behind the curve," Nakao&nbsp; told Reuters. "Given that JGB yields remain stable and inflation is on the rise, now is the chance to tweak yield curve control."

(With inputs from Reuters)

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Takehiko Nakao, the former Asian Development Bank chief, has raised concerns about the Japanese yen's declining value, suggesting that Japan may need to intervene in the currency market again.

Takehiko Nakao, the former Asian Development Bank chief, has raised concerns about the Japanese yen's declining value, suggesting that Japan may need to intervene in the currency market again. Nakao also called for the Bank of Japan (BOJ) to reconsider its ultra-easy monetary policy. In a recent interaction with Reuters, Nakao spoke about the risks associated with prolonged monetary easing, highlighting the need for a possible policy modification. Reuters quoted Nakao as saying, "There may be views that the intervention is not imminent as the depreciation has not been so rapid compared to the last time when authorities intervened in September/October. But it's fully possible the authorities will conduct intervention in case the yen weakens further." In the face of a weakening yen, Japan has spent over 9 trillion yen last year to stabilise the currency. The yen, currently trading around 147.77 against the dollar, has been a cause for concern, as a weaker yen can negatively impact Japan's exports and create economic instability. Takehiko Nakao, who worked as the top currency official from August 2011 to March 2013, supervised a significant intervention in 2011 to control the yen’s strength in response to the U.S. Federal Reserve's quantitative easing. However, now that the yen is considerably weaker, Japan faces different economic challenges, such as rising import prices and increased living costs. Nakao's concerns are echoed by investors who view prolonged monetary easing as distorting markets and hurting bank profits. A weaker yen has emerged as a result of Japan's contrast with the global trend of monetary control. Other major central banks, such as the Federal Reserve, have hiked interest rates to fight off inflation while the BOJ continues to undertake potent monetary stimulus measures. As the BOJ concludes its two-day meeting this week, it is widely expected to maintain its yield curve control (YCC) targets at a negative 0.1 per cent for short-term interest rates and 0 per cent for the 10-year bond yield. However, Nakao, who is in talks with present policymakers, argues for a change in direction. "In the face of ongoing headline inflation and an excessively weak yen, the BOJ may have no choice but to proceed with monetary policy normalisation, including an exit from negative rate policy and yield curve control, so as not to fall behind the curve," Nakao told Reuters. "Given that JGB yields remain stable and inflation is on the rise, now is the chance to tweak yield curve control." (With inputs from Reuters) WATCH WION LIVE HERE

Japan contemplates yen intervention and policy shift as economic concerns mount

The Reserve Bank of India (RBI) will likely keep its policy rates unchanged for the fourth consecutive time at the upcoming bi-monthly monetary policy review meeting in early October.

This stance is expected due to persistently high retail inflation and the U.S. Federal Reserve's commitment to a hawkish stance, according to government sources.

The RBI had previously raised the benchmark repo rate to 6.5 per cent on February 8, 2023, and has maintained it at this level since; citing concerns about rigid retail inflation and global factors, including hiked prices for crude oil.

Madan Sabnavis, Chief Economist at Bank of Baroda, said&nbsp;that the RBI would maintain the status quo due to high inflation and tight liquidity.

He noted, "In fact, going by RBI forecast on inflation, it would be above 5 per cent in Q3 too, which will ensure that the status quo prevails for the calendar year for sure and probably Q4 too."

Sabnavis also highlighted uncertainties surrounding the Kharif crop, particularly in pulses, which could lead to price hikes.

Retail inflation based on the Consumer Price Index (CPI) decreased somewhat from 7.44 percent in July to 6.83 percent in August, although it still exceeded the RBI's comfort level of 6 percent. The government has given the RBI a target of keeping inflation at 4 per cent with a 2 per cent margin on each side.

Expecting a further reduction in CPI inflation to 5.3-5.5 per cent in September 2023, Aditi Nayar, Chief Economist at ICRA Limited, said that there are “upside risks to food inflation due to uneven and sub-par monsoons and low reservoir levels affecting Kharif yields and Rabi sowing.”

The Reserve Bank's projections indicate CPI inflation at 5.4 per cent for 2023-24, with Q2 at 6.2 per cent, Q3 at 5.7 per cent, and Q4 at 5.2 per cent, with risks evenly balanced. CPI inflation for Q1, 2024-25 is projected at 5.2 per cent. The RBI primarily considers CPI-based inflation in its monetary policy decisions.

Sanjay Bhutani, Director of the Medical Technology Association of India (MTaI), called for the RBI to contemplate an interest rate reduction to stimulate growth, given the market sentiment of retaining the benchmark interest rate at 6.5 per cent. He also suggested that if a rate reduction is not feasible due to high retail inflation and the Federal Reserve's hawkish stance, the RBI should provide a clear indication of future rate easing, which would benefit sectors like medical technology.

Sandeep Bagla, CEO of Trust Mutual Fund, acknowledged that the interest rate environment has&nbsp;deteriorated since the last MPC policy review in August. With both the U.S. and Indian economies growth and inflation rising to alarming levels, he expects the MPC to maintain the existing repo rates. However, Bagla said that headline inflation is expected to decrease in the next few month.

The Reserve Bank has maintained the repo rate at 6.5 per cent since February, following the earlier increase from 6.25 per cent. In subsequent bi-monthly policy reviews in April, June, and August, the benchmark rate remained the same.

The Monetary Policy Committee (MPC) comprises three external members and three RBI officials, with its next meeting scheduled for October 4-6, 2023.

Governor Das leads the committee. Other RBI officials&nbsp;include&nbsp;Rajiv Ranjan (Executive Director) and Michael Debabrata Patra (Deputy Governor). External members include Shashanka Bhide, Ashima Goyal, and Jayanth R. Varma.

(With inputs from PTI)

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The Reserve Bank of India (RBI) will likely keep its policy rates unchanged for the fourth consecutive time at the upcoming bi-monthly monetary policy review meeting in early October.

The Reserve Bank of India (RBI) will likely keep its policy rates unchanged for the fourth consecutive time at the upcoming bi-monthly monetary policy review meeting in early October. This stance is expected due to persistently high retail inflation and the U.S. Federal Reserve's commitment to a hawkish stance, according to government sources. The RBI had previously raised the benchmark repo rate to 6.5 per cent on February 8, 2023, and has maintained it at this level since; citing concerns about rigid retail inflation and global factors, including hiked prices for crude oil. Madan Sabnavis, Chief Economist at Bank of Baroda, said that the RBI would maintain the status quo due to high inflation and tight liquidity. He noted, "In fact, going by RBI forecast on inflation, it would be above 5 per cent in Q3 too, which will ensure that the status quo prevails for the calendar year for sure and probably Q4 too." Sabnavis also highlighted uncertainties surrounding the Kharif crop, particularly in pulses, which could lead to price hikes. Retail inflation based on the Consumer Price Index (CPI) decreased somewhat from 7.44 percent in July to 6.83 percent in August, although it still exceeded the RBI's comfort level of 6 percent. The government has given the RBI a target of keeping inflation at 4 per cent with a 2 per cent margin on each side. Expecting a further reduction in CPI inflation to 5.3-5.5 per cent in September 2023, Aditi Nayar, Chief Economist at ICRA Limited, said that there are “upside risks to food inflation due to uneven and sub-par monsoons and low reservoir levels affecting Kharif yields and Rabi sowing.” The Reserve Bank's projections indicate CPI inflation at 5.4 per cent for 2023-24, with Q2 at 6.2 per cent, Q3 at 5.7 per cent, and Q4 at 5.2 per cent, with risks evenly balanced. CPI inflation for Q1, 2024-25 is projected at 5.2 per cent. The RBI primarily considers CPI-based inflation in its monetary policy decisions. Sanjay Bhutani, Director of the Medical Technology Association of India (MTaI), called for the RBI to contemplate an interest rate reduction to stimulate growth, given the market sentiment of retaining the benchmark interest rate at 6.5 per cent. He also suggested that if a rate reduction is not feasible due to high retail inflation and the Federal Reserve's hawkish stance, the RBI should provide a clear indication of future rate easing, which would benefit sectors like medical technology. Sandeep Bagla, CEO of Trust Mutual Fund, acknowledged that the interest rate environment has deteriorated since the last MPC policy review in August. With both the U.S. and Indian economies growth and inflation rising to alarming levels, he expects the MPC to maintain the existing repo rates. However, Bagla said that headline inflation is expected to decrease in the next few month. The Reserve Bank has maintained the repo rate at 6.5 per cent since February, following the earlier increase from 6.25 per cent. In subsequent bi-monthly policy reviews in April, June, and August, the benchmark rate remained the same. The Monetary Policy Committee (MPC) comprises three external members and three RBI officials, with its next meeting scheduled for October 4-6, 2023. Governor Das leads the committee. Other RBI officials include Rajiv Ranjan (Executive Director) and Michael Debabrata Patra (Deputy Governor). External members include Shashanka Bhide, Ashima Goyal, and Jayanth R. Varma. (With inputs from PTI) WATCH WION LIVE HERE

RBI expected to maintain interest rates amid high inflation & global factors: Report

Inflation in Europe's largest economy fell in September to its lowest level since the Ukraine war. This is likely to be seen as the beginning of the end for the high inflation that has weighed heavily on Germany's economy. Preliminary data from the federal statistics office showed on Thursday that German consumer prices rose by an annual 4.3% in September.

Inflationary pressure eases in Germany

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