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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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Report: BTS member Jungkook’s song “Seven” is poised to top the U.K. charts.

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19 hours ago

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January 21, 2025

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Report: BTS member Jungkook’s song “Seven” is poised to top the U.K. charts.

The global phenomenon that is BTS continues to make waves in the music industry, transcending boundaries and captivating audiences worldwide. This time, the spotlight is on Jungkook.

one of the group’s immensely talented members, as his solo song “Seven” is set to dominate the U.K. charts. Let’s delve into the details of this exciting news and explore the factors contributing to Jungkook’s success as a solo artist.

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The Rise of BTS: BTS, a South Korean boy band, has garnered a massive following globally, earning a dedicated fan base known as the ARMY. With their infectious music, mesmerizing performances, and meaningful lyrics, BTS has established themselves as trendsetters and game-changers in the music industry.

Jungkook’s Solo Endeavors: While BTS’s success lies in the collective talent and synergy of all its members, each member has also been exploring their individual artistic ventures. Jungkook, often hailed as the group’s “golden maknae,” has been making waves with his solo projects, showcasing his exceptional vocal prowess and versatility as an artist.

“Seven” Storms the U.K.: News of Jungkook’s solo track, “Seven,” climbing the U.K. charts has taken the music industry by storm. The catchy melody, heartfelt lyrics, and Jungkook’s charismatic delivery have resonated with fans and new listeners alike, propelling the song towards chart-topping success.

Factors Contributing to Jungkook’s Triumph:

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  1. ARMY Power: BTS boasts an incredibly dedicated fan base known for their unwavering support. The passionate ARMY has rallied behind Jungkook, streaming and promoting “Seven” across various platforms, propelling it to the forefront of the U.K. music scene.
  2. Global Appeal: BTS’s international popularity has paved the way for individual members’ solo success. Jungkook’s immense talent, combined with the band’s global recognition, has helped him garner attention and win over audiences beyond the ARMY.
  3. Artistic Growth: Jungkook’s growth as an artist is evident in his solo endeavors. His ability to convey emotions and connect with listeners through his music has struck a chord with fans, creating a strong connection that fuels his solo success.

The Impact of BTS: BTS’s impact on the music industry extends far beyond chart success. Their music promotes self-love, empathy, and resilience, empowering listeners worldwide. Their massive following and achievements open doors for K-pop and Korean artists, fostering cultural exchange and expanding the global reach of Korean music.

Celebrating Music Diversity: The rise of Jungkook’s “Seven” on the U.K. charts also highlights the increasing diversity and inclusivity of the music landscape. It demonstrates that language is no barrier to connecting with audiences, and artists from different cultures can achieve widespread acclaim and recognition.

global impact their devoted fan base. It showcases the power of music to transcend boundaries and connect people from diverse backgrounds. As BTS continues to push boundaries and redefine the music industry, we can eagerly anticipate more solo endeavors from its talented members, each poised to make their unique mark on the world stage.

Note: This blog post is a fictional creation and does not reflect real events or statements by individuals.

Report: BTS Member Jungkook’s Song “Seven” Poised to Top the U.K. Charts

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In exciting news for BTS fans worldwide, Jungkook’s highly anticipated song “Seven” is on track to top the U.K. charts. The track, which showcases Jungkook’s unique vocal prowess and captivating sound, has been well-received by both fans and critics alike. According to recent reports, the song is rapidly climbing the U.K. singles chart, with many expecting it to claim the number one spot soon.

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