Mizuho Says India Monetary Policy Almost Maxed Out

The video discusses the impact of monetary policy in India, highlighting its limited effect due to high corporate debt and banking sector constraints. It emphasizes the need for structural reforms, with GST being a potential game changer. The GST is expected to be slightly disinflationary, but pre-GST sales have temporarily lowered CPI, with food prices playing a significant role.

What is one of the main challenges faced by the banking sector in India that affects monetary policy transmission?

• High inflation rates

• Excessive foreign investment

• Capital constraints

• Lack of consumer demand

Why might monetary policy be considered 'maxed out' in India?

• Because of excessive foreign debt

• Due to a lack of consumer spending

• Because of limited structural reforms

• Due to high inflation rates

How is the GST expected to impact inflation in India?

• It will cause inflation to fluctuate unpredictably

• It is expected to be slightly disinflationary

• It will have no impact on inflation

• It will significantly increase inflation

What was a major factor in reducing the CPI before the implementation of GST?

• Increased foreign investment

• Pre-GST sales

• Government subsidies

• Higher interest rates

What role did food prices play in the recent changes to the CPI?

• They caused inflation to stabilize

• They added to inflation significantly

• They had no impact on inflation

• They were the main factor in reducing inflation