Menu
BW CFO World
Community for Finance Professionals, Consultants and allied businesses
  • Home
  • News
  • Videos
  • Articles
    • Credit & Capital
    • Economic Trends
    • Financial Compliance
    • Financial Leadership
    • Financial Management
    • Financial Reporting
    • Financial Strategy
    • Risk Management
    • Taxation
  • Featured
  • Nominate for Awards
Close Menu
October 11, 2021

RBI may hike rates in March qtr of 2022; coal and chip shortages a worry: Report

Urvi Srivastava Financial Reporting chip, coal, growth, liquidity, monetary Policy, RBI

The central bank will start with liquidity normalisation moves this month, narrowing the difference between the rate at which it funds the system and at which it absorbs excess liquidity in December, Nomura said.

 The Reserve Bank is likely to change the stance of its monetary policy and hike rates from the first quarter of 2022, a Japanese brokerage said on Monday.

The central bank will start with liquidity normalization moves this month, narrowing the difference between the rate at which it funds the system and at which it absorbs excess liquidity in December, Nomura said.

It can be noted that the latest move by the Reserve Bank of India (RBI) last week to narrow the excess liquidity in the system through stated targets is being seen by some as the normalization of the policy, which has been very accommodative since the onset of the pandemic to boost growth.

The brokerage upped its consumer price index (CPI) inflation target for 2022 to 5.2 percent from 5 percent earlier. Demand remains strong in India, but there are supply-side headwinds in areas like chips which is bothering the auto sector and coal shortages which threaten to put parts of the country into darkness, it said.

The country is reporting coal shortages and power sector companies face the prospect of importing coal at significant cost.

With power demand likely to rise amid the continued economic normalization and upcoming festive sales, supply-side disruptions pose an important near-term downside risk to growth momentum, it warned.

For the week ended last Sunday, its Business Resumption Index rose to 105.1 from 103.4 in the prior week.

“If power outages become more widespread, then industrial output could suffer in the near term, while higher energy costs may squeeze firms’ margins and add to consumer price inflation,” the brokerage said in the report.

PTI

Urvi Shrivastav

→ Urvi Shrivastav

Finance Ministry releases Rs 9,871 cr grant to 17 states India set to achieve 450 GW renewable energy installed capacity by 2030: MNRE

Related Posts

Financial Reporting

Indian economist Jayati Ghosh named by UN to the high-level advisory board on multilateralism

nirmala sitharaman shuttershock

Financial Reporting

FM Raises Concern On Rising Oil Prices

economy

Financial Reporting

Sensex Tanks Over 2,700 Pts

Movements

  • adobe danDan Durn Appointed As Adobe’s New Chief Financial Officer
  • Vineet Mahajan_Vineet Mahajan Appointed As New CFO Of Avanse Financial Services On Sept 27
  • bharat pet director financeVetsa Ramakrishna Gupta To Lead Bharat Petroleum As Director Finance
  • tender cuts cfoTenderCuts Names Satya Rakesh as New CFO
  • dailmer CFOManish Thakore Helms Daimler India Commercial Vehicles as CFO

Selected Stories

  • Chandrasekar-K-1Leading with empathy is the correct mantra for success

    Read more

  • 20220331_113353Govt orders probe into fire incident involving Ola

    Read more

  • indian rupeeAsian stocks rise as Ukraine peace talks appear to progress

    Read more

  • economyTata Coffee rallies nearly 13 pc; Tata Consumer jumps over 5 pc

    Read more

  • rupeeRupee rises 4 paise to 75.69 against US dollar in early trade

    Read more

Categories

  • Accounting
  • CFO Stance
  • Credit & Capital
  • Economic Trends
  • Featured
  • Financial Compliance
  • Financial Leadership
  • Financial Management
  • Financial Reporting
  • Financial Strategy
  • Financial Technologies
  • Global News
  • Interview
  • Movements
  • Risk Management
  • Taxation

Recent Comments

    Back To Top
    BW CFO World
    • Home
    • News
    • Videos
    • Articles
      • Credit & Capital
      • Economic Trends
      • Financial Compliance
      • Financial Leadership
      • Financial Management
      • Financial Reporting
      • Financial Strategy
      • Risk Management
      • Taxation
    • Featured
    • Nominate for Awards
    © Copyright BW BUSINESSWORLD 2018. All Rights Reserved.