Tag: inflation

Unemployment, inflation, earnings of ‘friends’ increased under govt: Rahul Gandhi – Times of India

[ad_1]

Read More/Less


NEW DELHI: Congress leader Rahul Gandhi on Saturday attacked the government, alleging that under it unemployment, price rise, poverty and income of its “friends” have increased.
“What did this government increase? Unemployment, inflation and poverty. And, only the earnings of friends,” he said in a tweet in Hindi.

He cited a media report that claimed 9.9 crore people were part of the middle class before the Covid-19 outbreak and they were reduced to 6.6 crore after it.
Coronavirus: Live updates

[ad_2]

READ FULL ARTICLE HERE

Leave a comment , , , , ,

Uday Kotak Hopes the ‘Wolf of Inflation’ Doesn’t Come Out in 2022-23

[ad_1]

Read More/Less


Uday Kotak, Executive Vice Chairman and Managing Director of Kotak Mahindra Bank, on Friday expressed hopes that the ‘wolf of inflation’ does not come out in the year 2022 or 2023. Speaking in context of inflation, which investors expect will rise higher as economic recovery gathers steam, he said the ‘cry wolf’ story has been heard multiple times post 2020.

Kotak was on Friday awarded the India Business Leader of the Year award at CNBC-TV18’s virtually held 16th India Business Leader Awards (IBLA) 2021, which honoured high-achievers, outstanding leaders and true visionaries of corporate India and especially focused on those who made a difference in the year of the COVID-19 pandemic.

“If you look at the history post 2000s, we have heard the ‘cry wolf’ story very often. I still remember in 2008-09 huge amounts of money and liquidity were pumped in a post global financial crisis. I recollect economist telling us that the end result of so much liquidity and printing of money has to result in back-ended inflation. But I am still waiting in 2021 to figure out where that inflation is,” CNBC-TV18 quoted Kotak as saying.

“The challenge with the cry wolf story is that you say cry wolf long enough and the wolf has not come, but at some point the wolf does come and I hope that the wolf does not come into 2022 or 2023 that is the point which I would watch very closely — that is the wolf of inflation or significantly higher bond yields — is that wolf around the corner in 2022 or 2023. Therefore I will keep one eye on that from a risk management point of view,” he said.

The Kotak Mahindra Bank CMD added, “It (inflation) depends on how much of printing of money keeps on happening. If I see the price of bitcoin going to where it is – it is telling us investors are saying I have less confidence in the US currency and more confidence in bitcoin that is worrying to me. Because when you start saying the currency is not giving me as much confidence as some technology thing, it does worry me where are we going.”

“You can’t keep on endlessly printing paper and call it a valid currency and assume nothing happens forever. Therefore there is a deep concern and the size of stimulus and printing of money which is happening this time post pandemic is multiple times what happened post the financial crisis. Therefore, it is much larger and I would watch out for 2022 and 2023 this time more carefully because there is a chance that the wolf finally may appear when everybody has said forget the cry wolf story,” Kotak explained.

[ad_2]

READ FULL ARTICLE HERE

Leave a comment , ,

Sensex Tanks 562 Points, Nifty Cracks Below 14,800 Amid Weak Trend in Global Markets

[ad_1]

Read More/Less


Dropping for the fourth straight session, equity benchmark Sensex tumbled 562.34 points on Wednesday following losses in index majors Reliance Industries, HDFC Bank and ICICI Bank amid a weak trend in global markets ahead of the US Federal Reserve’s policy outcome. After a volatile session, the 30-share BSE index tanked 562.34 points or 1.12 per cent to close at 49,801.62. The broader NSE Nifty slumped 189.15 points or 1.27 per cent to 14,721.30.

ONGC was the top loser in the Sensex pack, declining around 5 per cent, followed by NTPC, Sun Pharma, SBI, IndusInd Bank, Bajaj Auto, PowerGrid and Reliance Industries. On the other hand, ITC, Infosys, TCS and HDFC were among the gainers.

Domestic equities dropped for the fourth consecutive day as concerns pertaining to recent rise in COVID-19 cases in various parts of the country and high inflation continued to weigh on investors’ sentiments, said Binod Modi, Head-Strategy at Reliance Securities. Additionally, he noted that weak cues from global markets ahead of the US Federal Reserve meeting outcome caused selling in domestic equities. The two-day meet started on Tuesday.

All key sectoral indices witnessed selling pressure with PSU banks, metals and auto indices witnessing steep correction. Elsewhere in Asia, bourses in Shanghai, Tokyo and Seoul ended on a negative note, while Hong Kong was in the positive terrain.

Stock exchanges in Europe were largely trading in the red in mid-session deals. Meanwhile, the global oil benchmark Brent crude was trading 0.89 per cent lower at $67.78 per barrel.

[ad_2]

READ FULL ARTICLE HERE

Leave a comment , , , ,

Focus on growth than inflation, says CEA

[ad_1]

Read More/Less


Krishnamurthy Subramanian’s comment on economic priorities comes ahead of policy framework review.

Chief Economic Advisor (CEA) Krishnamurthy Subramanian said on Saturday that the country requires growth at this juncture, even with economic trade-offs, as it aspires to increase its dominance and self- reliance in the global economy.

Dr. Subramanian’s comment comes ahead of the revision of policy framework and inflation targets for the Monetary Policy Committee (MPC) headed by the RBI Governor by March 31.

Inflation target review

It would be the first review for the Reserve Bank of India since it was tasked with a mandated inflation target of 4% with a 2% deviation in either direction in June 2016, when it adopted a flexible inflation targeting model.

“At this juncture we must focus on growth and when it comes to pressures for trade-offs, we must be leaning on growth,” Dr. Subramanian said at a virtual annual regional meeting of the CII, Eastern Region.

‘Shun profiteering’

Speaking about realising ‘Atmanirbhar Bharat’, the CEA said the private sector had to get back to “Shubh Labh” (ethical profit) and refrain from profiteering.

He gave examples from healthcare studies for Auyushman Bharat where it was found that the rates of the private sector hospitals were 6-7 times higher than those run by the government and that readmission rates in them were also higher.

Dr. Subramanian also called for a change in the mindset on how to increase the pie of government taxes instead of seeking its reduction across sectors.

He said the cycle of private sector investment would begin though there was a lag and to support it, government spending in capex was necessary. The government had already begun it and it would trigger private investment, the CEA added.

[ad_2]

READ FULL ARTICLE HERE

Leave a comment , , , , , , , , , , ,