ICRA's Nayar Reacts to India's CPI Print

The video discusses recent CPI data trends, highlighting a rise to 7% in August and expectations for further increases. It examines the implications for RBI's monetary policy, suggesting a potential rate hike. The current account deficit is analyzed, with predictions of moderation in the second half of the year. The video also covers the economic outlook, including trade balance and export trends, and concludes with a positive forecast for the upcoming sowing season due to favorable rainfall and reservoir levels.

What was the CPI inflation rate in August, and what is the expected trend for September?

• 7.5% in August, expected to decrease in September

• 6.7% in August, expected to decrease in September

• 7% in August, expected to increase slightly in September

• 6.9% in August, expected to remain stable in September

What is the expected current account deficit as a percentage of GDP for the first half of the year?

• 2.5%

• 4.5%

• 3%

• 5%

What factors are expected to help moderate the current account deficit in the second half of the year?

• Higher oil prices and increased imports

• Lower commodity prices and stronger seasonal exports

• Increased foreign investments and higher interest rates

• Decreased foreign exchange reserves and weaker exports

What is the anticipated rate hike by the RBI in response to the inflation trend?

• 50 basis points

• 75 basis points

• 35 basis points

• 25 basis points

How is the upcoming sowing season expected to be impacted by recent weather conditions?

• Negatively impacted due to drought conditions

• Positively impacted due to high reservoir levels and good rainfall

• Unchanged due to stable weather conditions

• Negatively impacted due to excessive rainfall