#MonetaryPolicy

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IMF's Katz Says Japan Has Scope to Normalize Policy

YouTube video by Bloomberg Television

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Fed's Opaque Policies Spark Market Uncertainty

The article critiques the Federal Reserve's lack of transparency in its monetary policy decisions, which has left financial markets confused and vulnerable. Federal Reserve Chair Kevin Warsh's recent news conference exemplified this issue, as he emphasized the Fed's commitment to reducing inflation but provided no concrete plans or actions to achieve this goal. This opacity has raised concerns among economists and market participants, who argue that clear communication is essential for maintaining stability. The article highlights how the Fed's silence on its strategies—such as potential reductions in policy meetings—has created uncertainty, undermining investor confidence. Critics suggest that the Fed's reluctance to explain its decisions risks exacerbating economic instability. The piece underscores the importance of transparency in central banking, arguing that vague statements can have real-world consequences for markets and the broader economy. By failing to provide clarity, the Fed is effectively leaving the public in the dark about its priorities and methods.

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Yen intervention illustrates the dangers of monetary experiments

Actu Jeux Video

basispointinsight.com

BasisPointInsight.com - The RBI Can Defend the Rupee, but Only the Government Can Strengthen It by Arvind Mayaram

The RBI can buy time for the rupee, but lasting strength depends on productive investment, export capacity and a more competitive economy. by Arvind Mayaram, BasisPointInsight.com

basispointinsight.com

BasisPointInsight.com - With Exchange Rate Pressures Easing, RBI Missed a Chance to Rebuild Monetary Space by Mridul Saggar

After intense depreciation pressure, RBI succeeded in stabilizing the rupee exchange rate by taking capital flow measures in its June policy. This opened the possibility for RBI prioritizing inflation...

nile1.com

Fed's Kashkari Urges Early Interest Rate Increase as Economic Strength Persists

Minneapolis Federal Reserve President Neel Kashkari warned Wednesday that the U.S. central bank should begin raising interest rates in small steps immediately

basispointinsight.com

BasisPointInsight.com - Review of the MPC Decision: The Fine Print on Outperformance by Ashima Goyal

Behind the policy pause, easing inflation, stronger external buffers and broader investment point to a more resilient economy. by Ashima Goyal, BasisPointInsight.com

tayari24.com

RBI Maintains 5.25% Repo Rate Amid Inflationary Pressures: August 2026 Monetary Policy Overview For Rajasthan Government Exam Preparation and Practice Download Tayari24 Official App from Play Store - https://play.google.com/store/apps/details?id=education.ai.tayari24

Key Highlights * Repo rate held steady at 5.25% reflecting a neutral stance. * Core inflation remains moderate despite headline rises driven by food and fuel. * Projected GDP growth for FY 2026‑27 stands at 6.7% with a CPI inflation target of 5.0%. * Policy framework includes SDF at 5.00%, MSF at 5.50%, and bank rate at 5.50%. * Next MPC session scheduled for 5–7 October 2026. Detailed Insights Policy Decision Context: The Monetary Policy Committee, chaired by Governor Sanjay Malhotra, opted for unanimity in maintaining the repo rate, citing persistent food‑fuel price shocks while core inflation remains contained. Growth Outlook: Forecasts indicate a resilient economy with quarterly growth ranging from 6.4% to 7.0% in FY 2026‑27, supported by robust services, investment, and export momentum. Inflation Dynamics: Retail inflation peaked at 4.4% in June 2026, surpassing the 5% target, yet core CPI held at 3.9% and core excluding precious metals between 2.3% and 2.5%. Global and Domestic Risks: Geopolitical tensions, volatile oil prices, and monsoon variability pose downside risks, prompting the RBI to preserve policy neutrality for flexibility. Key Concepts * Repo Rate: The rate at which banks borrow from the RBI under the Liquidity Adjustment Facility. * Neutral Stance: A policy position that neither stimulates nor restrains the economy, allowing room for future adjustments. * Core Inflation: Inflation measure excluding volatile food and fuel components. * Liquidity Adjustment Facility (LAF): RBI’s toolset for managing short‑term liquidity in the banking system. * Monetary Policy Committee (MPC): The body responsible for setting key policy rates and guiding the RBI’s monetary stance.

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RBI MPC To Announce Monetary Policy Today: Here's What To Expect On Repo Rate, Home Loan EMIs

RBI MPC August 2026: The three-day MPC meeting began on August 3 and RBI Governor Sanjay Malhotra will unveil the committee's decision later today.

resist47.news

Trump Fed chair’s inflation strategy: leave it to the market | Eduardo Porter

via US news | The Guardian — Kevin Warsh would rather stay out of the fray – and thus devalue the Fed’s credibility as an economic steward It must feel strange to argue that government action is inevitably counter-productive – illegitimate even – when the government is you. For the last half century, the Republican party has been comfortable with the contradiction. It’s framed in that clever quote from Ronald Reagan’s 1981 inaugural: “Government is not the solution to our problem; government is the problem.” Solutions, in t

tayari24.com

Understanding India's Money Supply: From M0 to M4 and Their Policy Significance For Rajasthan Government Exam Preparation and Practice Download Tayari24 Official App from Play Store - https://play.google.com/store/apps/details?id=education.ai.tayari24

Key Highlights * M0 represents the monetary base, the highest level of liquidity directly controlled by the RBI. * M1 captures the most liquid money, including cash and demand deposits used for everyday transactions. * M2 expands on M1 by adding post‑office savings, reflecting broader household liquidity. * M3, the broadest measure employed by the RBI, incorporates time deposits and serves as the primary tool for monetary policy decisions. * M4 extends M3 by including all post‑office deposits, offering the widest view of financial savings in the economy. Detailed Insights The Reserve Bank of India (RBI) publishes five monetary aggregates—M0 through M4—to gauge liquidity, inflationary pressures, and growth prospects. Each aggregate is defined by the type of assets it aggregates and the degree of liquidity they possess. M0 (Reserve Money) is the foundation of the banking system. It consists of currency issued by the RBI and the reserves that banks hold with the central bank. Because it is the base from which banks create credit, the RBI exercises the strongest control over M0. M1 (Narrow Money) includes currency in circulation and demand deposits at commercial banks. It is the most liquid component and is used for day‑to‑day payments. The RBI monitors M1 to assess immediate transactional demand. M2 adds post‑office savings deposits to M1, thereby capturing a larger slice of household savings that are still relatively liquid. This aggregate helps the RBI understand the broader savings behaviour of the population. M3 (Broad Money) is the aggregate that the RBI relies on for setting policy. It comprises M1 plus time deposits such as fixed and recurring deposits. Time deposits constitute a significant share of bank deposits, so M3 reflects both transactional and savings liquidity, making it a comprehensive indicator of credit conditions. M4 is the widest measure, incorporating all of M3 and the total deposits held at post offices (excluding National Savings Certificates). It provides the most exhaustive picture of financial savings, though it is the least liquid of the five aggregates. As the aggregates widen from M0 to M4, coverage of financial assets increases while liquidity gradually diminishes. Policymakers use this hierarchy to calibrate interest rates, control inflation, and forecast growth. Key Concepts * M0 – The monetary base, comprising currency issued by the RBI and reserves held by banks. * M1 – The narrowest measure of money, including cash and demand deposits. * M2 – A broader measure that adds post‑office savings to M1. * M3 – Broad money, which incorporates time deposits and is the primary policy indicator. * M4 – The widest aggregate, adding all post‑office deposits to M3.