Increasing US shale gas production should stabilise oil prices, in contrast to the spike of the past.
According to the report, the December inflation will likely continue to peak off to 7.3 per cent.
A month-long national lockdown to arrest the spread of COVID 2.0 could shave off 100-200 bps of GDP, leading to a 300 bps risk to annual growth, a brokerage report has flagged while expressing doubts over the ability of local lockdowns to control the pandemic. The second wave of the coronavirus inflection has caught the government off-guard with the daily cases jumping over 6.5 times in the past 30 days. With close to 3.53 lakh fresh daily infections, the country is the worst hit globally.
RBI policy surely cannot impact agflation, in any case.
A favourable monsoon and government support to the rural economy are among the reasons that agrochemical companies, including makers of pesticides and fertilisers, have done well.
The MPC headed by RBI Governor Shaktikanta Das will announce the resolution of the meeting at around noon on Thursday.
RBI is expected to cut policy rates by 50 basis points by 2016.
The RBI governor is focused on growth, and keeping rupee slightly depreciated is part of that 'Atmanirbhar Bharat' strategy.
Other countries with a large number of cases including Brazil, Russia, Spain and the United States of America, all have more people heading to work.
The Reserve Bank of India has already reduced the policy rate by a total of 75 basis points, or 0.75 per cent, since January.
Bank of America (BofA) Securities expects India to be the third-largest economy in the world by 2031. The economic rise could become a reality by 2028, but the Covid pandemic delayed the pace, BofA Securities economists Indranil Sen Gupta and Aastha Gudwani wrote in a report.
Inflows from Europe, falling crude oil to come to the rescue if rupee cracks against the dollar.
On Friday, the euro weakened to a near 14-month-low against the dollar, after the European Central Bank announced a fresh round of stimulus and promised more if required.
To provide exporters/importers greater flexibility in risk management, RBI enhanced the limit available to exporters to 50 per cent
While rate cuts may increase churn between banks, these may not boost credit offtake meaningfully.
May touch 64/$ due to foreign flows slowing down
RBI is committed to bringing down retail inflation to eight per cent by January 2015 and six per cent by January 2016.
In a recent report, BofA-ML suggests investors to track these six event risks in July apart from the Greek drama
RBI Governor Raghuram Rajan has said falling oil prices act as a cushion for CAD, adding it is time India does away with restrictions on gold imports
Rajan's deputy Khan cautions against early celebration of falling inflation, unhedged forex exposure.
RBI on Monday conducted an unprecedented level of liquidity infusion to the tune of Rs 3.3 lakh crore, in which banks bid for as much as Rs 4.5 lakh crore. The central bank said it would conduct a liquidity infusion auction of Rs 1 lakh crore on Tuesday as well, to help banks tide over the liquidity crisis.
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