Recently, Indian GDP for June 2020 Quarter printed -23.9% growth. Interestingly, just a few weeks before this print, RBI MPC announced that it was holding rates steady because CPI inflation was at 6.93%, outside the target range of 2% to 6%. Is it appropriate to hold rates steady, when we have strong degrowth and supply disrupted (and […]
In December of 1930 Bank of United States (BOUS), based primarily in the city of New York failed. It was the first bank failure in New York during the great depression which started in Oct 1929. The main reason for the failure of the bank was that although ostensibly the bank had sufficient equity capital, in reality, […]
In this blog, I attempt to read the mind of MPC (Monetary Policy Committee) of RBI to guess if the assessment of RBI regarding required real rate of return has changed to keep the Indian financial system stable. The table below gives, for last six financial years starting on 1st April of respective years, what was the […]