Since April 2022, the RBI has adopted a stance of focusing on withdrawal of accommodation to tackle inflation. Liquidity in the banking system has been at a deficit over the past six months, with the weighted average call rate (WACR) broadly remaining 20-25 basis points above the repo rate from August to January. The WACR is the operating target of the RBI’s monetary policy.
NY Fed’s John Williams flags need to gather more information on inflation risks before rate decisions
Federal Reserve officials John Williams and Alberto Musalem have flagged persistent inflation risks, with rapid AI infrastructure investment potentially adding to price pressures. Williams backed