Tashi lhunpo monastery, Monastery in Shigatse, China

New Delhi, May 19 Members of the the Reserve Bank of India's Monetary Policy Committee (MPC) highlighted concerns of spillovers from global inflation emanating from ongoing geopolitical conflicts and supply-side disruptions, besides acknowledging the need for reasonable policy actions to tame inflation, said brokerage house Kotak Securities in a report.The minutes reinforced the necessity to frontload withdrawal of policy accommodation amid increasing risk of inflation expectations getting unanchored."While in all likelihood the April inflation reading of 7.79 per cent may have been the peak, the descent is expected to be very slow with all prints remaining above 6 per cent at least for the rest of CY2022," the report said.The persistence of elevated commodity prices amid supply-chain strains and geopolitical tensions is gradually making inflation more generalised and the risks have been adequately acknowledged in the MPC minutes of May meeting.Even as the brokerage retains the base case repo rate hike of 40 basis points along with a 50 basis points hike in Cash Reserve Ratio (CRR) in the upcoming June policy, however, it cannot rule out an outside chance of 50 basis points hike given the need towards the conventional moves of multiples of 25 basis points.In minutes of the recent policy meeting, MPC members highlighted the persistence of elevated inflation emanating from supply disruptions caused by the Russia-Ukraine war and Covid lockdowns in China as key risks.They also acknowledged that though inflation was mainly supply-led, monetary policy action was necessary to avoid de-anchoring inflation expectations.RBI Governor Shaktikanta Das noted that the worsening inflation outlook "warrants timely action to forestall second round effects which could lead to un-anchoring of inflation expectations".However, the MPC members expressed a sense of ease compared to earlier policies from the steadily improving growth scenario in the economy.Das highlighted that the rebound in domestic activity was getting gradually generalised. Additionally, he also noted that monetary policy actions aimed at lowering inflation and anchoring inflation expectations should help strengthen medium-term growth, the brokerage said quoting the minutes documents.Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Tashi Lhunpo MonasteryFOLLOW

Tashi lhunpo monastery, Latest News

Reeling under the mismanagement of Xi Jinping’s Zero-Covid Policy, parts of Beijing have again come under a lockdown on ... ...

Islamabad, May 22 At the invitation of Chinese State Councilor and Foreign Minister Wang Yi, Pakistani Foreign Minister ... ...

Beijing, May 22 China has earmarked 500 million yuan (nearly $74 million) for this year's flood season response, ... ...

An engineer, robotics expert, entrepreneur and the mountain lover Sameer Kelkar, CEO and R and D head, Grind Master ... ...

New Delhi, May 20 Domestic equity benchmark indices erased all its losses they witnessed in the previous session ... ...

New Delhi, May 20 After reports of China building a bridge along the Indian frontier emerged, Rahul Gandhi ... ...

Beijing, May 20 China is willing to work with all countries, including the BRICS nations, to promote common ... ...

New Delhi, May 19 Members of the the Reserve Bank of India's Monetary Policy Committee (MPC) highlighted concerns ... ...