Risk of stagflation in India lowers further, say RBI officials thehindu.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindu.com Daily Mail and Mail on Sunday newspapers.
The empirical findings suggest supply-side shocks such as spikes in commodity prices along with tighter financial conditions and relatively higher depreciation of domestic currency are the major determinants of stagflation risk in India, concluded a paper written by Deba Prasad Rath, Silu Muduli and Himani Shekhar in a paper titled ‘Low Stagflation Risk in India.
The study reveals that nonbanks are more responsive to changes in G-Sec yields than banks. Overall, a one per cent increase in G-Sec supply is found to be associated with a 9.5 to 10 basis points increase in long term yields. Non-bank entities absorbed a significant portion of newly issued sovereign debt during the Covid-19 pandemic. Nonetheless, banks still dominate the ownership of g-secs in India.
Share of non-bank entities holding G-secs increasing since Covid: RBI paper thehindubusinessline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindubusinessline.com Daily Mail and Mail on Sunday newspapers.