RBI Easing Will Be Delayed Further, Says Continuum Economics’s Chanana

The video discusses the challenges faced by the Reserve Bank of India (RBI) in managing monetary policy amidst external factors and inflation. It highlights the impact of food prices on inflation, which constitutes a significant portion of the Consumer Price Index (CPI) basket in India. The RBI's focus on price stability is emphasized, despite the need for economic stimulus. The debate between focusing on headline versus core inflation is explored, along with the RBI's cautious approach to rate cuts due to persistent inflationary pressures.

What has been the recent change in the RBI's stance on monetary policy?

• The RBI has decided to increase interest rates.

• The RBI has no control over inflation.

• The RBI is focusing on price stability over easing.

• The RBI is planning to cut rates immediately.

Why is food a significant factor in India's inflation?

• Food prices are controlled by the government.

• Food is a small part of the CPI basket.

• Food constitutes a large portion of the CPI basket.

• Food prices have no impact on inflation.

What percentage of the CPI basket does food represent in India?

• 25%

• 50%

• 75%

• 100%

What is the RBI's key objective according to the discussion?

• Focusing solely on core inflation.

• Reducing unemployment rates.

• Increasing economic growth at any cost.

• Maintaining price stability in headline inflation.

What is the RBI's current approach towards rate cuts?

• The RBI is aggressively cutting rates.

• The RBI is holding off on rate cuts.

• The RBI has stopped monitoring inflation.

• The RBI is increasing rates.