Get subscribed to our newsletter
Get interesting updates to your email inbox.
Mumbai: The Reserve Bank of India (RBI) is expected to hold interest rates at its monetary policy review on Tuesday and is more likely to cut rates by the end of the year when there is more clarity on the monsoons.
According to the Export-Import Bank of India, the rising trend in inflation seen over the last two months and the rainfall deficits are expected to weigh over the considerations of weak economic performance.
“Consequently, policy rate cut by the RBI in its third bi-monthly policy appears bleak. The RBI is likely to maintain status quo on rates in its bi-monthly policy meet on August 4,” it said.
Consumer price-indexed (CPI), or retail, inflation rose to an eight-month high of 5.4 percent in June riding on costlier food, fuel, housing, clothing and footwear.
While the CPI-urban for June inched higher to 4.55 percent, the CPI-rural jumped to 6.07 percent from 5.52 percent in May.
At its last review in June, RBI cut the repo rate, at which it lends short-term to commercial banks, from 7.5 percent to 7.25, but left other parameters like the cash reserve ratio (CRR) and statutory liquidity ratio (SLR) unchanged at 4 percent and 21.5 percent, respectively.
It was the third repo cut this year in June, while the central bank had indicated that there may not be any further cuts in the near term.
Giving the reasons for the June policy stance, RBI Governor Raghuram Rajan said plans for lower food output needed to be in place, global financial markets were volatile, factory output was recovering unevenly, services sector was emitting mixed signals, fuel inflation was up, exports were down and liquidity had improved.
According to India Ratings and Research, the RBI is likely to wait and watch on rates on Tuesday.
“Ind-Ra expects the policy stance to reflect RBI’s continued intention to anchor both inflation and inflationary expectations. This has become even more important for RBI after its agreement with the government to follow a framework of inflation targeting,” it said.
Meanwhile, American research firm Moody’s Analytics, in a report this week, warned against the NDA government’s moves to tamper with the autonomy of the Reserve Bank of India in deciding on interest rates as potentially damaging for the economy.
“We believe that a government-elected panel undermines the RBI’s independence. Moving to the new model would severely dent the RBI’s competency: Credibility would be lower, politics would drive decisions, and transparency would be reduced,” the economic research company said.
The government last week released the draft Indian Financial Code, which proposes to remove the RBI governor’s veto right in the monetary policy committee.
Besides taking away the RBI governor’s authority to veto interest rate decisions, the draft also proposed that the monetary policy committee would have four representatives of the government and only three from the central bank, including the RBI “chairperson”.
“Overall, we believe that tampering with the central bank’s independence would make it difficult to anchor inflation expectations. This would weigh on India’s economic prospects, particularly financial market stability,” said the Moody’s report.
“But given the criticism of the draft bill, it is unlikely to pass parliament,” it added.
Terming the measure as a “dangerous road ahead”, it said India’s monetary policy, with Governor Raghuram Rajan at the helm, has been effective.
The 'Millennial Mood Index 2021' (MMI) was released by CASHe, India's AI-driven financial wellness platform with a mission to make financial inclusion possible for all. According to the survey, more than 84 per cent of millennials across the country have increased their wealth-management strategy to prepare for future contingencies while also looking for opportunities for stronger and more sustainable growth in the post-pandemic world. The pan-India survey, conducted among more than 30k customers on CASHe's platform, aimed to capture the impact of the Covid-19 pandemic and how it has altered millennials' everyday behaviour across a variety of topics such as health, travel, shopping, savings & credit appetite, and so on.
While the majority of millennials have become more cautious about their finances as a result of the pandemic, the report also highlighted the cohort's progress in saving and insurance awareness. While 52 per cent of respondents said they have increased their savings, 35 per cent have purchased comprehensive health and life insurance plans, and the remaining 13 per cent have committed to more extensive investment programmes.
The pan-India survey was conducted by CASHe among more than 30k customers. | Pixabay
The pandemic, combined with the 'work from home' culture, has also raised health awareness among Indian millennials. According to the MMI report, more than 71 per cent of millennials have become more health conscious as a result of the pandemic. In their quest for a healthier life, a sizable portion of the cohort has adopted new lifestyle changes. 54 percent of respondents said they now prefer eating home-cooked healthy food, and 28 percent have adapted to daily walks or some form of exercise. 11 per cent of respondents said they had started practicing yoga and meditation, while the remaining 7 per cent had signed up for a nearby gym.
When asked if they eat out at restaurants, more than 52 per cent said that even if they eat outside, they would prefer restaurants that adhere to health, safety, and social distancing norms. 22 per cent have become accustomed to ordering food online and prefer doing so because they can do so from the comfort of their own home while adhering to the necessary safety standards. Whereas 26 per cent of respondents remain cautious and avoid eating outside at all costs.
Following nearly two years of uncertainty and a travel ban, the report revealed a huge pent-up demand among millennials for a getaway vacation. More than 56 percent of those polled said they intend to take a vacation early this year, once the current surge in Covid-19 cases subsides. In terms of travel destination preferences, 71 per cent said they were going somewhere domestic, 9 per cent said they were going somewhere international, and 20 percent said they hadn't decided yet.
28 percent have adapted to daily walks or some form of exercise. | Unsplash
The report stated that 38 per cent of respondents have permanently shifted to shopping online as they now prefer it, demonstrating a clear shift in millennial shopping behavior altered by the pandemic. While 17 per cent preferred physical shopping, 45 per cent preferred a combination of the two depending on what they wanted to buy.
When asked about returning to work in the post-pandemic order, 68 per cent of respondents said they are eager to return to the physical world and work from their offices. While 15 percent preferred to continue working from home (WFH), the remaining 17 per cent preferred a hybrid model of functioning that included visiting the office once or twice a week.
V Raman Kumar, Founder Chairman, CASHe said, "The Covid-19 pandemic has radically altered our everyday behavior, perhaps forever. However despite the challenges and economic upheavals witnessed in the last two years, millennials have proven themselves as the most resilient generation. Millennials who also represent the country's largest workforce have showcased the grit and resolve to bounce back and kick-start the economy. Their unwavering "can do" spirit is what has put them at the global centre stage while showcasing India as the largest millennial market to lure in brands across the globe. They are not just aspirational, but are a very responsible cohort seeking to reimagine old orders. Millennials have the potential to redefine India's investment & consumption story, which will play a critical role in shaping our country's economy in the post-pandemic era."
Millennials will play a critical role in shaping our country's economy in the post-pandemic era. | Unsplash
The pan-India survey was conducted by CASHe among more than 30k customers. More than 65 per cent of the responses were received from the metro markets of Mumbai, Delhi, Kolkata, Hyderabad, Bangalore, Ahmedabad, Pune and Chennai while the rest 35% were received from other tier-II and III towns. (IANS/SP)
(Keywords : millennial, mood, index, survey, country, India, finance, pandemic, investment, health, lifestyle, vacation, challenges, resilient, generation, customers.)
- Irregular Sleep Schedule Can Increase A Person's Risk Of ... ›
- Can We 'Catch' the Moods and Emotions of our Friends like ... ›
A renowned Harvard Business School professor delivers a persuasive reconsideration and defence of purpose as a management ethos, demonstrating the enormous performance advantages and societal benefits that can be realised when businesses get their purpose right.
Too many businesses use purpose, or a reason for existing, as a marketing tool to make themselves feel good and appear good to the public.
Some people have only hazy notions of what purpose is, conflating it with strategy and other concepts like as "goal," "vision," and "values." Even the most well-intentioned leaders are unaware of the full power of purpose and interact with it only half-heartedly and superficially. Outsiders see this and become sceptical about businesses and the capitalist enterprise as a whole.
Ranjay Gulati shows the catastrophic blunders leaders unintentionally make while seeking to create a purpose for being, based on significant field study. Furthermore, he demonstrates how businesses might further incorporate purpose than they now do, resulting in tremendous performance gains for consumers, suppliers, workers, shareholders, and communities alike.
Also read: Underrated Business Tips And Tricks by Eric
Organizations are being updated to create more autonomy and cooperation, allowing individual employees to work more meaningfully.
* Creating a community of inspired and committed stakeholders by employing strong narrative to express a purpose for being, arouse emotions, and develop a community of inspired and committed stakeholders; and
* Creating cultures that not only promote purpose, but also allow people to connect the company's mission to their own personal motivations.
As Gulati says, a stronger connection to purpose is the key not only to individual firms' success, but also to humanity's destiny. Purpose may serve as a completely new operating system for the organisation, boosting performance while also bringing real benefits to society, especially in light of capitalism's undermining and low levels of confidence in business.
(keywords: hi-performance companies, catastrophic blunders, "goal," "vision," and "values)
In India, on January 26, 2022, thousands of youngsters set fire to empty train carriages. They disrupted rail traffic in order to protest what they claim are irregularities in recruiting by the railway department, which is one of the world's major employers. (VOA/ MBI)
(Keywords: India, recruitment, bihar, train, burnt, job, employers, railway)