Inflation Not a Worry for India for Next Year, Says Edelweiss Securities’s Arora

The video discusses the current state of inflation, noting a decrease from 3.2% to 3.15% with expectations of further decline. It highlights mixed dynamics in food and core inflation, influenced by cost-push and demand factors. The discussion shifts to monetary policy, predicting a terminal rate of at least 5% and the challenges in forecasting rate cuts. Global economic noise and domestic factors are considered, with a focus on growth concerns and the need for policy stimulus. The Reserve Bank's actions and global monetary trends are also examined, emphasizing the importance of balancing inflation and growth.

What factors contributed to the recent rebound in core inflation?

• Stable core inflation

• Reduction in food prices

• Increase in petrol and diesel prices

• Decrease in gold prices

What is the expected terminal rate in the current easing cycle?

• 5%

• 3%

• 4%

• 6%

What was the primary reason for the Bank of Thailand's recent rate cut?

• Global uncertainty

• Fiscal stimulus

• Domestic demand increase

• Inflation stability

What is the main concern for the economy in the near term according to the transcript?

• Inflation stability

• Growth slowdown

• Increase in private investment

• Decrease in global demand

What is the impact of fiscal stimulus on inflation dynamics in the medium term?

• It has no impact on inflation

• It stabilizes inflation

• It reduces inflation

• It could increase inflation