Rising inflation in India risks RBI’s monetary easing
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Consumer price inflation is on course to test the upper limit of the its 2%-6% target,
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. Updated: 28 Apr 2021, 05:36 AM IST Bloomberg
Provincial curbs to stem the virus are disrupting domestic supply chains, risking higher prices for everything from essential drugs to cars.
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The world’s worst Covid-19 outbreak in India risks fanning price pressures, threatening to limit options for the inflation-focused central bank to support the economy.
Provincial curbs to stem the virus are disrupting domestic supply chains, risking higher prices for everything from essential drugs to cars. A recent weakening in the rupee is worsening the situation, boosting the local cost of imported oil and other raw materials for manufacturing.
Looming danger of debt
Prepare for exit strategy to ensure fiscal health
The country s national debt has increased to its highest level, driven by the unprecedented public health crisis. The Ministry of Economy and Finance said Tuesday that the national debt, comprised of bond issuances and borrowing by central and local governments, hit a record 846.9 trillion won ($750.5 billion) as of the end of last year, up 17.1 percent from 2019.
The double-digit increase was inevitable for the country to minimize the economic fallout from the COVID-19 pandemic. The Moon Jae-in administration executed four rounds of supplementary budgets totaling 67 trillion won to offer emergency relief to individuals and businesses hit by the worldwide coronavirus outbreak. It had to increase the issuance of treasury bonds to fund the aid. Large-scale economic stimulus packages also raised the debt level.
Australia s central bank commits to keep 3-year yields low amid bond rout Selasa, 02 Maret 2021 / 13:54 WIB Sumber:
KONTAN.CO.ID -
SYDNEY. Australia s central bank on Tuesday affirmed its pledge to keep interest rates at historic lows as policymakers battle to stop surging bond yields disrupting the country s surprisingly strong economic recovery.
Concluding its March board meeting, the Reserve Bank of Australia (RBA) kept rates at 0.1% and committed to maintaining its highly supportive monetary conditions until its employment and inflation goals are met.
Global bond markets have sold off heavily in recent days on speculation the massive monetary stimulus will soon end as economies emerge from the pandemic-induced recession.