HSBC Chief Economist Sees Stick India Inflation

The video discusses the current inflation situation, highlighting pressures from food, fuel, and core inflation. It examines the RBI's efforts to manage inflation through rate hikes and liquidity control. The discussion also covers GDP growth, noting strong current performance but potential slowing due to reduced demand and export challenges. The impact of the rupee's depreciation on inflation and exports is also analyzed, with a focus on India's FX reserves providing some stability.

What are the main components contributing to the current high inflation rates?

• Only food and fuel

• Only international prices

• Core inflation and services

• Food, fuel, and core inflation

What steps has the RBI taken to address inflation?

• Increased taxes on oil products

• Reduced repo rate by 90 basis points

• Increased rupee liquidity

• Hiked the repo rate by 90 basis points

How is the RBI expected to adjust its rate hikes by the middle of next year?

• Stop rate hikes completely

• Slow down and give smaller rate hikes

• Maintain the current rate hikes

• Increase the rate hikes significantly

What is one of the reasons for the rupee's depreciation?

• Decrease in commodity imports

• Strengthening of the dollar

• Widening trade and current account deficits

• Increase in exports

How do India's foreign exchange reserves help in the current economic situation?

• They reduce the trade deficit

• They decrease exports

• They stabilize the rupee

• They increase inflation