{"id":263438,"date":"2023-10-09T19:07:46","date_gmt":"2023-10-09T13:37:46","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=263438"},"modified":"2023-10-10T11:21:31","modified_gmt":"2023-10-10T05:51:31","slug":"our-inflation-fight-calls-for-a-fiscal-pullback-too","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/our-inflation-fight-calls-for-a-fiscal-pullback-too\/","title":{"rendered":"Our inflation fight calls for a fiscal pullback too"},"content":{"rendered":"\n

Source:<\/strong> The post is based on the article \u201cOur inflation fight calls for a fiscal pullback too<\/strong>\u201d published in \u201cLive mint\u201d on 9th October 2023.<\/p>\n

Syllabus:<\/strong> GS3- Economy- inflation<\/p>\n

News:<\/strong> The article discusses the Reserve Bank of India’s strategies under Governor Shaktikanta Das to control inflation, keeping it at 4%, and its impact on the market, amid challenges like volatile global crude oil prices and geopolitical instability.<\/p>\n

What is the RBI’s current stance on inflation?<\/strong><\/h2>\n

Clear Target:<\/strong> RBI, under Governor Das, is aiming to achieve a 4% inflation rate, making it a clear, defined goal.<\/p>\n

Recent Inflation Data:<\/strong> The retail inflation was slightly troublesome at 6.8% in August, and RBI is focused on bringing it down.<\/p>\n

Unchanged Repo Rate:<\/strong> The repo rate is kept steady at 6.5% to maintain a consistent policy.<\/p>\n

Selling Government Bonds:<\/strong> RBI plans to sell government bonds in the open market as a strategy to manage monetary conditions and indirectly control inflation.<\/p>\n

What challenges does the RBI face in controlling inflation?<\/strong><\/h2>\n

Volatile Oil Prices:<\/strong> The conflict in West Asia is causing global oil prices to fluctuate, which can impact India\u2019s inflation.<\/p>\n

Geopolitical Instability:<\/strong> Events like the unrest in West Asia create uncertainty and can affect various economic factors, complicating inflation management.<\/p>\n

Fiscal Policy Decisions:<\/strong> The government’s spending and fiscal policies, especially with the goal to reduce its budget deficit to 4.5% of GDP by 2025-26, will influence inflation and RBI’s strategies.<\/p>\n

Upcoming Elections:<\/strong> With general elections scheduled in 2024, there could be shifts in governmental spending, which could disrupt RBI\u2019s efforts in controlling inflation.<\/p>\n

Global Economic Conditions:<\/strong> U.S. short-term bonds now yield 5%, and such global economic variables might influence the Indian financial market, presenting additional hurdles for RBI\u2019s inflation management.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cOur inflation fight calls for a fiscal pullback too\u201d published in \u201cLive mint\u201d on 9th October 2023. Syllabus: GS3- Economy- inflation News: The article discusses the Reserve Bank of India’s strategies under Governor Shaktikanta Das to control inflation, keeping it at 4%, and its impact on the… Continue reading Our inflation fight calls for a fiscal pullback too<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184,10501],"class_list":["post-263438","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/263438","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=263438"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/263438\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=263438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=263438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=263438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}