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RBI may wait for a few more months to raise interest rates, says survey

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3 years ago

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RBI may wait for a few more months to raise interest rates, says survey

Faced with relatively low inflation amid a global surge, the Reserve Bank of India will still wait at least a few more months before it joins other central banks in raising interest rates following the pandemic, a Reuters poll found.

Among the hardest-hit emerging economies from shutdowns and disruptions to business by COVID-19, India has only recently begun to recover much of its lost ground and New Delhi’s latest budget was modestly stimulative compared with expectations.

Indeed, the RBI has been notably dovish, having kept its key repo rate at a record low of 4.00% for nearly two years.

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Respondents in a Feb. 2-4 Reuters poll were closely split on the timing of the next rise, with slightly more than half, 17 of 32, expecting 25 basis point rise to 4.25% in April.

Among the remaining 15, 13 were nearly split between June and August. While only one economist said it would come as early this month, the other said October of this year.

That would follow a widely-expected interest rate rise from near-zero in March by the U.S. Federal Reserve, which is grappling with the highest consumer inflation since 1982.

Economists expect at least another two to follow, while markets are pricing in four more.

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Nearly two-thirds of respondents in the latest poll, 24 of 38, see one more RBI rate rise by year-end, little changed from a poll taken last month.

But the pressure is rising for India’s central bank – well behind peers like Brazil, which has already raised its key interest rate by 875 basis points since March 2021 – to begin tightening.

“Ideally, the RBI should have been more worried about containing inflation, but it has been more worried about lifting growth. It is possibly behind the curve. But at this point, it’s very difficult to say what is right or what is wrong,” said Kunal Kundu, India economist at Societe Generale.

“Post the budget announcement and given a global environment where everybody is normalising monetary policy, I don’t think the RBI has many options left on the table.” The RBI was forecast to raise the reverse repo rate – the rate at which it borrows from banks – to 3.55% from 3.35% at its meeting on Thursday, narrowing the corridor between it and the repo rate to 45 basis points.

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India’s central bank has rescheduled its monetary policy committee meeting, delaying it by a day to Feb. 8-10, it said in a statement on Sunday, citing a public holiday in the state of Maharashtra to mourn the death of Bollywood singer Lata Mangeshkar.

Respondents were divided about what would be the biggest driver for RBI rate rises this year.

About half of economists responding to an additional question, 15 of 31, said combating high inflation would steer its moves. Another 12, or 39% of respondents, said playing catch-up with the Fed. The rest said the RBI would tighten policy to prop up the rupee.

“The RBI would not only have to manage the delicate growth-inflation trade off but also find answers to the vexed question of fiscal dominance of monetary policy and prepare itself for any spillovers from accelerated Fed tightening,” noted Samiran Chakraborty, chief economist for India at Citi.

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Inflation is expected to remain below the RBI’s upper tolerance limit of 6% until at least 2024, according to the poll, but trend above the medium-term target of 4%.

Asked if the RBI was behind the curve with its monetary policy strategy, 19 of 29 said it was not, while the rest said it was.

Complete News Source : Business Standard

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Akshay Kumar wishes director Priyadarshan on birthday with Bhooth Bangla BTS pic: ‘Surrounded by ghosts…

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3 weeks ago

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January 30, 2025

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Akshay Kumar wishes director Priyadarshan on birthday with Bhooth Bangla BTS pic: ‘Surrounded by ghosts…

Akshay Kumar and Priyadarshan, the acclaimed Indian director, celebrated their 68th birthday on Instagram. Kumar, who has worked with Priyadarshan on several cult comedies of the early 2000s, wished him a happy birthday and called him a mentor. The duo is now back together for their upcoming horror-comedy, Bhooth Bangla.

The first poster of the movie has been released, and it is expected to hit theaters in 2025. Akshay Kumar wore a black fedora and a green jacket, layered over a black tee, and fans have expressed their excitement for their new movie.

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The duo’s dynamic and deep bonding have been praised by fans, who have expressed high anticipation for their new movie. The first poster of Bhooth Bangla has already been released, and the movie is expected to hit theaters in 2025.

Akshay Kumar, the versatile Bollywood actor, recently celebrated director Priyadarshan’s birthday by sharing a behind-the-scenes (BTS) photograph from their upcoming film, “Bhooth Bangla.” In the image, Akshay humorously captioned, “Surrounded by ghosts…” The photo features Akshay alongside Priyadarshan and co-actor Paresh Rawal, all dressed in traditional attire, with a black cat perched on Akshay’s shoulder, adding a whimsical touch to the scene.

Reunion After 14 Years

This collaboration marks a significant reunion between Akshay Kumar and Priyadarshan, who last worked together on the film “Bhool Bhulaiyaa” in 2007. Their partnership has been celebrated in the past for delivering successful comedies like “Hera Pheri” and “Garam Masala.” Fans have eagerly anticipated their return to the big screen together, and “Bhooth Bangla” promises to be a delightful addition to their repertoire.

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About ‘Bhooth Bangla’

“Bhooth Bangla” is a horror-comedy that blends elements of suspense with humor, a genre in which both Akshay Kumar and Priyadarshan have excelled. The film is produced by Balaji Telefilms Ltd in association with Cape of Good Films. The motion poster released earlier this year features Akshay Kumar in a suit, with a cat on his shoulder, licking milk slyly, setting the tone for the film’s intriguing and humorous premise.

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Anticipation and Fan Reactions

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The BTS photo shared by Akshay Kumar has generated excitement among fans, who are eager to see the trio back together on screen. The playful caption and the presence of the black cat suggest that “Bhooth Bangla” will offer a mix of thrills and laughs, staying true to the successful formula of their previous collaborations.

As the release date for “Bhooth Bangla be a significant highlight in the upcoming entertainment lineup. The reunion of Akshay Kumar, Priyadarshan, and Paresh Rawal, combined with the intriguing premise and the playful BTS moments, has set high expectations among audiences. Fans can look forward to a cinematic experience that promises both chills and chuckles.

For a visual glimpse into the making of “Bhooth Bangla,” you can watch the following video Akshay Kumar expressed his gratitude as they once again united for their upcoming movie Bhooth Bangla. This marks a new chapter in their long-standing collaboration since the 2000s. He shared a picture from behind the scenes of their new movie, where it seems like they are laughing about something.

Akshay wrote,”Happy Birthday, Priyan Sir! What better way to celebrate than by spending the day on a haunted set, surrounded by ghosts…both real and unpaid extras? Thank you for being a mentor, and the only person who can make chaos look like a masterpiece. May your day be filled with fewer retakes. Wishing you a fantastic year ahead!”

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