Scotiabank's McCully Says RBI May Not Want to Act

The video discusses inflation in India, focusing on the difference between headline and core inflation. While headline inflation has decreased, core inflation remains unchanged. The video explores reasons for this, such as stable food and fuel prices, and examines the implications for monetary policy. It highlights the importance of core inflation in policy decisions and considers factors like the Goods and Services Tax (GST) and banking system liquidity. The video also touches on the independence of the central bank and its impact on interest rate decisions.

What are the implications of the liquidity in the banking system on monetary policy decisions?

How does the independence of the central bank influence the decision-making process regarding interest rates?