Free Press Journal
  • Behind weak rupee is a vulnerable external sector

    The Indian Rupee is falling. We are within striking range of Rs 70 to the US dollar. In intraday trade, the currency touched an all-time low of Rs 69.10 in the last week of June. The nosedive has raised alarm as the rupee becomes the worst performer among currencies. There are many questions from every corner and some answers from Union Minister Piyush Goyal, who has cited “external factors” for this fall.

  • A turning in rates after four years

    There are three simple things to note in Wednesday’s decision of the Monetary Policy Committee (MPC) to hike the policy repo rate from 6.0 per cent to 6.25 per cent. First, the decision to hike the rate is unanimous. All six MPC members voted in favour. Second, the hike comes after a very long pause – the last rate hike was four-and-a-half years ago. In that sense, this is a turning. Third,

  • petrol price hike, petrol price, K R Sudhaman, GDP, economy

    Fuel price hike: The constructed myopia of the market

    It was less than a year ago that the government put out some sure shot views that in sum said: “Oil prices are broadly capped”. The words came in the Economic Survey 2016-17, Vol 2 of Aug 2017, which reported with rather uncanny surety, “Shale technology will ensure that prices cannot remain above (the $50 ceiling)”. Soon enough, prices started rising. Rather wisely, the next Economic Survey (2017-18 of Feb 2018) remembered

  • RBI on frauds: A voice of helplessness

    Banks, private or public, do business with public money. Banking regulation should be effective and efficient, which it is not – plain and simple.

  • rbi

    A monumental change at the RBI

    The institution of the Monetary Policy Committee in many ways signals a monumental change in the process of decision-making at the Reserve Bank of India. For the first time beginning with the new monetary policy announcement scheduled for Oct 4, the committee rather than one person, who until now was the RBI governor, will decide the policy interest rates in the economy.

  • Monetary Policy: Who really moved my interest rate?

    The monetary policy of the Reserve Bank of India has become one of the most watched media events these days in the light of persistent demands to lower interest rates. This undue attention on the monetary policy points to how much in the policy framework and in the socio-economic environment of the nation has changed in recent years.

  • blackmoney

    Key messages from farewell policy

    On the surface, the third bi-monthly monetary policy statement for 2016-17 announced on Tuesday is not particularly unusual. There is no change in the policy repo rate and the Cash Reserve Ratio, or CRR, which stand at 6.5 per cent and 4 per cent respectively. And unsurprisingly, there is market acceptance that this is what is required for our times.

  • Issues that travel beyond an unpleasant exit of RBI Guv

    As Raghuram Rajan prepares to move out of the office of the RBI Governor, the implicationsof his exit and the manner in which he has been booted out raise important issues that go well beyond the RBI and will reinforce fears that the establishment will brook no voice that does not sing its tune. While the government decides and the media speculates about who will take over, this is also a good

  • RBI-logo

    Policy review: A case of stable and sustainable growth?

    The Sixth Bi-Monthly Monetary Policy Statement 2015-16, coming in just before the government’s annual budget statement, followed market expectations. The monetary policy kept the policy repo rate unchanged at 6.75%. The RBI kept the Cash Reserve Ratio (CRR), as also the liquidity provisions under the overnight repos and the 14-day repos and long-term repos unchanged. Neither were there any changes in the Statutory Liquidity Ratio (SLR). The ‘status quo’ seems

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