Podcast: RBI policy and inflation, a warmer winter, markets and ELSS

On Wednesday, the RBI monetary policy committee announced its fifth consecutive rate hike this year. RBI also lowered the GDP growth forecast for the current financial year. 
 

According to the RBI governor, persistent and sticky core inflation remains a cause of concern. Do these concerns make more rate hikes likely in the future? What do they mean for the economy and individual borrowers?

In its December-February forecast, the Indian Meteorological Department (IMD) warned that North and Northwest India might experience a warmer winter this time. 

While this could give some respite from the intense cold of North India, it could harm the standing rabi crops if the temperature rise is unusual and abnormal. How does a warm winter affect farm output?

The December monetary policy of the Reserve Bank of India didn't cheer market bulls yesterday.

Despite a repo rate hike on expected lines, equity markets edged lower as the governor rang alarm bells over sticky core inflation.

Analysts also said the policy leaves doors open for more rate hikes.  

So, is it time to opt for fixed-income securities instead of equities?

While markets may not be too worried about recession or inflation, there is something that you should be concerned about. And that is saving. Or saving to save taxes. Some experts might suggest you invest in fixed-income securities, there are others who may ask you to also look at Equity Linked Savings Schemes to save on taxes. What exactly are Equity Linked Savings Schemes?