DBS Bank: RBI May Lower Bond Purchases Amid Liquidity Flood

The video discusses India's persistent inflation, driven by factors like food prices and supply distortions. The RBI's response includes liquidity absorption and potential policy changes. The informal economy has been significantly affected, with formalization increasing. Political implications are considered, with upcoming elections potentially influencing government actions. The general consensus is that inflation is not demand-driven but linked to supply issues, expected to ease in 2022.

What factors are contributing to India's stubbornly high inflation?

How is the reopening of the economy expected to impact inflation in the coming months?

What role does the monsoon play in the context of inflation and food prices?

What measures has the central bank taken in response to inflation concerns?

In what ways has the informal economy been affected during the pandemic?

What are the expected political implications if consumer prices do not decrease significantly?

How does the government plan to address the rising food prices affecting consumers?