Core inflation inches up; manufacturing activity declines
MPC is said to have failed to achieve inflation target if average CPI inflation falls outside 2-6% range for three straight quarters. This was the case in the three quarters from Jan to Sept of 2022
The meeting was held ahead of the RBI's next monetary policy review, which is scheduled December 5-7
The MER, however, warned that the global macroeconomic situation remained precarious and a recession in many advanced economies would impact India's exports
Indian currency's recovery since US CPI leads to reversal of onshore-offshore arbitrage
May make MPC less hawkish on rate hike; WPI inflation dips to 19-month low of 8.39% in Oct
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A slower pace of rate hikes could curb the dollar's rally this year which has weakened its Group-of-10 currency peers
The data boosted other currencies against the dollar. The Japanese yen at one point climbed to its biggest single-day rise since 2008 and the British pound notched its biggest daily
The Department of Finance has developed a "downside scenario" that considers the impact of more persistent inflationary pressures and further tightening in monetary policy
Shaktikanta Das defends timing of rate hikes amid failure to meet inflation target
Annual food price inflation picked up to 85.8 per cent from 84.6 per cent in August, while prices of non-food items rose 62.8 per cent.
FPIs offloaded nearly Rs 2 trillion ($265 billion) in Indian equities during Samvat 2078, data show.
Canada's Consumer Price Index (CPI) rose 6.9 per cent in September on a year-over-year basis, decelerating from 7 per cent in August, Statistics Canada has said.
But cautions that fight against price rise will be 'dogged and prolonged'
However, anticipating critics, Sitharaman added that the government is working to bring it down under 6% and would like to bring it down under 6% and "ideally" to 4%
High inflation will keep the markets on edge as they were hoping that the global central banks, especially the US Fed and the RBI will go soft on rate hikes over the next few months
The central bank will now have to provide a report to the government explaining the reasons for the failure and the steps to be taken
Analysts at UBS expect headline CPI inflation to average 6.7 per cent YoY in FY23 and see RBI's policy outlook to be data dependent contingent on the Fed action
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