Not only do the bonds increase the balance sheet size of the central bank by infusing permanent liquidity into the system, the central bank runs the risk of stoking inflation in medium to long term
Its policies need to evolve to take cognizance of geo-political risks and the opportunities that digitisation offers to the poor
The report said there will still be a deficit of Rs 1 trn in the system till Dec even if RBI continues to inject money through buyback of govt bonds
On the growth front, with the recent data shows that industrial production is maintaining its growth momentum, RBI has retained its GDP growth projection for 2018-19 at 7.4%
The highest priority is further strengthening of domestic macroeconomic fundamentals, says RBI governor Urjit Patel
RBI kept the policy rates unchanged. The pause surprised the Street as it was expecting a hike in the rates to stem the fall in the domestic currency
Foreign portfolio investors to get allocation based on how long they plan to stay invested
The decision underlines a strict adherence to its inflation mandate to the exclusion of all other considerations such as exchange rate and financial stability
Defaults by IL&FS points to a larger issue
The central bank left the repo rate at 6.50 per cent but changed the policy stance to a calibrated tightening from neutral in earlier
The intent of the Reserve Bank's policy sends signals for supporting growth in the near-term
With the actual retail inflation coming below RBI's projections in the last two months, the rate pause in October 2018 is not altogether unexpected
RBI on Friday kept the policy repo rate unchanged at 6.5 per cent
The Monetary Policy Committee voted 5:1 in favour of the state quo on rates.
The S&P BSE Sensex Index has tumbled 9.6% since reaching a record in August
An area where the RBI has been factual is banking. While highlighting challenges of banks as regards capital and asset quality, it has highlighted its reposition process which was put in place in Feb
Nevertheless, India would probably remain one of the fastest growing large economies in the world
This is the second consecutive time the repo rate was hiked. In June, the repo rate was raised for the first time in over four years.
The report has been authored by Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI
Centre believes there will be green signal for amending the law to enable the policy