IndiaIndia cenbank s high surplus transfer to buffer hit on govt revenues
Swati BhatAftab Ahmed
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FILE PHOTO: A Reserve Bank of India (RBI) logo is seen at the gate of its office in New Delhi, India, November 9, 2018. REUTERS/Altaf Hussain/File Photo
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The Reserve Bank of India s board approved a significantly higher than expected surplus transfer to the government on Friday but it may not be enough to cushion the damage from a crippling second wave of the novel coronavirus.
The RBI announced a surplus transfer of 991.22 billion rupees ($13.58 billion) for the 9-month period from July 2020 to March 2021, the central bank said in a statement. The bank will move to an April to March accounting year from 2021/22, from a July to June year.
India's central bank said on Monday that the second wave of the COVID-19 pandemic in India has had a bigger impact on aggregate demand than on aggregate supply, and it believes the economic slowdown was not as severe as a year ago.
IndiaIndian inflation eases, but COVID-19 curbs risk stoking prices
Chandini MonnappaAftab Ahmed
2 minute read
A man sorts yams in a supply truck at a wholesale market in Mumbai, India, December 14, 2018. REUTERS/Francis Mascarenhas
Indian inflation eased to a three-month low in April as food costs rose more slowly, but lockdowns to contain the country s raging coronavirus epidemic risk creating supply bottlenecks that could fuel price pressures in coming months.
Annual retail inflation (INCPIY=ECI) rose 4.29%, down from 5.52% in March and near the 4.20% forecast in a Reuters poll of economists.
Food prices, which account for nearly half of the Ministry of Statistics inflation basket, rose 2.02% compared with 4.87% in the previous month.
IndiaBuoyant India growth outlook trimmed, more downgrades seen likely
Indradip GhoshHari Kishan
4 minute read
The record-setting COVID-19 wave in India has not had much impact so far on economic growth forecasts, with economists polled by Reuters cutting their buoyant outlook only slightly over the past few weeks, though most said further downgrades could be coming.
Another wave of infections in the world s second-most populous country has led to a health crisis, with the total reported cases at more than 18 million and more than 200,000 deaths. read more
While that has pushed many state governments to reimpose curbs, dealing a further blow to economic activity still reeling from the effects of the first wave, Indian shares ended at their highest level since mid-March on Thursday. read more
IndiaIndia does not see logic in U.S. putting it on currency watchlist
Reuters
2 minutes read An India Rupee note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration/File photo
India does not see any logic in the United States putting it on a monitoring list of currency manipulators, a trade ministry official said on Tuesday. I don t understand any economic logic, Anup Wadhawan, India s commerce secretary told reporters. The Reserve Bank of India is following a policy that allows currency movements based on market forces, he said.
Last week, the U.S. Treasury Department put India along with 10 other economies including Singapore, Thailand and Mexico on the Monitoring List that it said required close attention to their currency practices. read more