Tag: Monetary Policy

[ad_1] India’s rate setters wanted to stay cautious as volatile food prices lent uncertainty to the overall inflation trajectory and did not want to confuse investors by changing policy stance just yet, the minutes of the monetary policy meeting showed Friday. The Reserve Bank of India’s six-member monetary policy committee unanimously voted to pause for the fifth straight review and retained the stance on “withdrawal of accommodation,” indicating rates may remain higher for longer. [ad_2] Source link

[ad_1] The Federal Reserve is winning the battle against high inflation, but the fight is not over yet, a parade of senior bank officials told Wall Street this week. Why the stern lecture? Fed insiders appear to have been taken by surprise by a big market rally after the central bank left a key short-term interest rate unchanged last week. Stocks jumped to a record high and long-term rates fell sharply. Giddy investors viewed the Fed decision and encouraging words from its chair, Jerome Powell, as a sign the central bank would begin to cut interest rates starting in March ... Read more

[ad_1] There’s a key piece of evidence in the bond-market surge that followed the latest US central-bank meeting, according to Mohamed El-Erian: The Federal Reserve has a communication problem. Nearly a week after policymakers left interest rates on hold and unveiled projections for more cuts than previously expected in 2024, traders and Fed officials are still at odds over the path for policy, said El-Erian, the president of Queens’ College, Cambridge, and a Bloomberg Opinion columnist. [ad_2] Source link