Money & finance
Monetary policy, inflation, the rupee, banks and markets: how the RBI and the financial system shape the price and availability of money in India.
Money
The RBI’s dollar window should be judged by how well the rupee market works
Selling dollars directly to three oil companies can ease pressure in a thin market. The policy earns its keep if trading conditions improve and the RBI can close the window once they normalise.
Money
The RBI’s October hike is a case for restraint after the first move
A broader spread of price increases and stronger growth justify a quarter-point hike. Further tightening should depend on persistent inflation and the transmission of the first move.
Money
India’s July inflation gap shows why households feel different price shocks
Headline inflation rose only slightly in July. The rural and urban data show why household exposure and the policy response depend on what is getting dearer.
Money
India’s open-market buybacks will be judged by the price companies pay
SEBI’s decision to restore exchange buybacks gives companies more flexibility. The benefit to continuing shareholders depends on execution price and what the cash would otherwise earn.
Money
The RBI’s June pause buys time to see how far the oil shock spreads
India’s central bank has raised its inflation forecast and lowered its growth outlook. The case for a rate increase turns on how widely higher costs spread.
Money
India’s new insolvency route can preserve more value if lenders act early
The April insolvency amendment creates a quicker creditor-led route. The gains depend on early action, credible valuation and safeguards for suppliers and other creditors.
Money
Keeping India’s 4% inflation target makes sense through an oil shock
A credible headline target protects household purchasing power. The Reserve Bank still needs room to respond differently to a temporary price shock and to persistent inflation.
Money
India’s new inflation basket changes what a food shock means
The first CPI on the 2024 base puts January inflation at 2.75%. Updating the basket is overdue, and the published bridge shows which comparisons survive the change.
Money
India’s banks can absorb losses. The harder test is keeping credit open.
The RBI’s December stress tests show ample aggregate bank capital. The economy still depends on how banks and non-bank lenders respond when funding tightens and losses concentrate.
Money
The RBI has cut the repo rate. The real test is who gets cheaper credit.
The RBI’s cut to 5.25% is defensible even with strong GDP growth. Whether it changes spending and investment depends on loan resets, deposit costs and which borrowers can actually get credit.
Money
India’s 0.25% inflation print strengthens the case for cautious RBI easing
October’s headline reading combined cheaper food, GST changes and a high comparison base. The RBI should test the case for easing against underlying prices and demand.
Money
Quantitative easing or money printing?
Money printing is one of the most controversial topics in economics. To pinpoint exactly how quantitative easing and money printing are different, one needs to know what each is.
Money
Why governments want cryptocurrencies of their own
Digital Currencies are threatening state’s monetary sovereignty. To counter this, countries are looking into creating their own Cryptocurrencies.
Money
Understanding government cryptocurrencies
Why governments are taking a second look at digital currencies, and what a central bank digital currency would change for tracking money, taxes and monetary control.
Money
How does cryptocurrency work?
Cryptocurrencies have become a hot topic for debate; heard by most people but understood by few. One should have a working understanding of this emerging technology before forming opinions.