Inflation

To tackle high inflation in the country, RBI's monetary policy committee has raised the repo rate by 50 bps, to 5.40%. Notably, the new repo rate is higher than that of pre-pandemic levels, which was 5.15%. Notably, demand in the economy is typically suppressed by increasing interest rates. The move "might have an immediate impact on home buying for short term," said… read-more

The Union minister said, India's gold demand went up by 43% during the April-June quarter, which stood at 170.7 tonnes, higher than the previous 119.6 tonnes. However, considering the inflation factors ahead, including Rupee-USD rates and policy measures consumer sentiments could be hurt, as prices could go up. Notably, India's gold demand increased by 54% during the second quarter to Rs 79,270 crore, compared to Rs 51,540 crores.

India has suspended wheat exports with immediate effect as part of its efforts to contain rising domestic prices. The decision to limit wheat exports comes after a massive crop loss in March due to a heatwave. Inflation, which reached 7.79 percent in April, is also putting pressure on the government. According to government sources, China is importing food grains from India after crop losses caused food insecurity there.

Petroleum and Natural Gas Minister Hardeep Puri has said that the Central Government would be happy to bring petroleum and diesel under GST, but that the states are not willing. Puri insisted that the government is taking responsibility, and suggested that the states should also try, and cut down the value-added taxes on fuel. He also chalked up the oil price hike to the Russia-Ukraine conflict.

After a meeting slated for this week, the Life Insurance Corporation (LIC) board would finalize its results for the Fiscal Year 2022. The insurer is expected to file a revised public offer document this coming week and listing would be done by 12th May. Furthermore, the results, once approved, would be sent to the Insurance Regulatory and Development Authority of India (IRDAI), following which the revised document would be filed.