Hindi English Translation || Editorial || Adequate response: on the RBI and inflation

Adequate response: on the RBI and inflation

The RBI policy review (नीतिगत समीक्षा, नीति का मूल्यांकन) will need Central assistance (केंद्रीय सहायता) to effectively (प्रभावी ढंग से, कारगर तरीके से) fight inflation (मुद्रास्फीति, महँगाई)

After months of waiting (delay, hold back, stand by, bide one’s time) and watching (निगरानी रखना, नजर रखना), the Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) (मौद्रिक नीति समिति) has decided to act to try to rein in (नियंत्रित करना, काबू में रखना) rising inflation. Its decision to raise interest rates (ब्याज दर) by 25 bps seemed increasingly inevitable. The RBI now projects retail inflation at 4.9% in Q2, higher than its August projection (अनुमान, पूर्वानुमान) of 4.7%. This is set (ready, prepared, or likely to do something; ready, prepared, primed, poised) to rise in Q3 to 6% before easing (कम होना, नरम पड़ना) marginally (मामूली रूप से, थोड़ा-सा) to 5.7% in Q4. Global oil prices have again crossed (पार करना, से अधिक होना) $100 a barrel (a unit of volume for crude oil, equivalent to 42 US gallons. A standard unit of volume used for crude oil, equivalent to approximately 159 litres. (1 U.S. liquid gallon equals about 3.785 liters)) following (coming after or as a result of; subsequent to, after, in the aftermath of, consequent to) a brief (संक्षिप्त, थोड़े समय का) reprieve (अस्थायी राहत, थोड़ी देर की मोहलत). India’s oil marketing companies, likely (probably; in all probability, presumably, doubtlessly, presumably) following government instructions, have held off on passing most of this increase on to consumers. However (nevertheless, nonetheless, yet, but), they cannot withstand (to remain undamaged or unaffected by something; resist, endure, weather, tolerate) such fiscal pressures (strain on government finances arising from revenue shortfalls, rising expenditure, budget deficits or borrowing requirements; financial strain, budgetary strain, pressure on public finances, fiscal burden) forever (permanently, always, evermore, perpetually). The impact of higher crude (unrefined petroleum; crude oil, unrefined oil, raw petroleum, fossil fuel) prices has been bad enough (sufficiently serious, unpleasant or undesirable to cause concern; serious enough, severe enough, troubling enough, sufficiently harmful), but higher petrol and diesel prices will likely send inflation spiralling (increase or develop rapidly, often in a way that becomes difficult to control; escalate, intensify, mount, snowball). Simultaneously, a deficient (lacking, wanting, insufficient, inadequate) monsoon (the rainy season accompanying the seasonal wind of South Asia; rainy season, rains, downpour, precipitation) is pushing up (increase, raise, elevate, boost) food prices and will continue to do so for the rest of the year. When supply-side (relating to the supply of goods and services in an economy; production-related, output-related, manufacturing-side, delivery-side) factors are the primary drivers (cause, factor, determinant, catalyst) of inflation, an interest rate hike can only have second-order (indirect or secondary rather than immediate or primary; secondary, indirect, subordinate, derivative) and largely (to a great extent; mostly, mainly, primarily, principally) marginal (having a minor or insignificant effect; slight, small, minimal, negligible) effects on inflation. In such a scenario (situation, context, circumstance, setting), the signal (sign, indication, cue, message) sent by the MPC becomes as important as the actual action. The MPC has used this latest policy review to attempt to dampen (to make something less intense; lessen, decrease, diminish, reduce) inflation expectations (anticipation, belief, assumption, prediction), an important area of action (sphere of activity, field of operation, domain of intervention, zone of work). The expectation of high inflation in the near future (imminent time, coming days, short term, impending period) can often become a self-fulfilling prophecy (a prediction that causes itself to become true simply because the prediction was made; inevitable outcome, guaranteed result, expected reality, preordained event), independent (free from outside control or influence; separate, distinct, unconnected, unrelated) of the factors driving prices up.

A 25 bps interest rate hike is a careful nudge (a gentle encouragement or push to do something; prompt, push, encouragement, coaxing) rather than (instead of, as opposed to, unlike, in place of) an inevitably ineffectual bludgeon. The fact that the MPC has changed its stance to ‘calibrated (carefully assessed, adjusted, or measured; measured, calculated, regulated, adjusted) tightening (policy action by a central bank to increase interest rates and reduce liquidity; rate hiking, monetary restriction, liquidity contraction, policy tightening)’ from ‘neutral (impartial, unbiased, non-partisan, objective)’ is the bigger signal. The question no longer (not anymore, nevermore, finished, in the past) is whether the RBI will hike rates in its next meeting in December, but by how much. The message from this stance change is that the central bank (the principal monetary authority of a country, responsible for conducting monetary policy, issuing currency and performing key functions relating to the banking and financial system; monetary authority, apex monetary institution, central monetary authority, reserve bank) will use all the tools (instrument, mechanism, apparatus, device) at its disposal to keep inflation in check. The RBI also clearly thinks that the economy can withstand such tightening (the restriction of something, especially monetary policy; restriction, squeezing, constriction, clamping down). It has revised upwards its GDP (the monetary value of all final goods and services produced within a country’s domestic territory during a specified period; measure of domestic output, measure of economic production) growth forecast (a prediction or estimate of future events; prediction, projection, estimate, anticipation) for 2026-27 to 7.1% from the 6.7% projected in August. That said (even so, despite what has just been said; however, nevertheless, nonetheless, even then), all economic agencies have, even before (occurring previously to a particular event; prior to, ahead of, in advance of, previously) interest rates were hiked, been predicting (forecast, foretell, foresee, anticipate) a slowdown (a decline in economic activity or growth; deceleration, downturn, decline, slump) in the second half of the year. The growth-inflation (relating to the dynamic between economic expansion and rising prices; growth-price, expansion-inflation, output-cost, development-inflation) trade-off (compromise, balance, equilibrium, accommodation) will again test the RBI’s deftness (neat and skillful handling; skill, finesse, agility, dexterity, adroitness). Higher interest rates may also pause (halt, stop, suspend, break) the ongoing exodus of Foreign Portfolio Investors (FPIs), giving the RBI some exchange rate-related breathing room. The central bank has done what it can on inflation so far (up to this point; until now, up to now, to date, hitherto). The onus (responsibility, burden, liability, obligation) is now on the government. It has several tools to control food inflation (the rate at which prices of food items rise over time, commonly measured in India through changes in the Consumer Food Price Index (CFPI); food-price inflation, rise in food prices, increase in food prices, food-price rise), such as (for example; like, namely, specifically, to illustrate) strategic buffers (a reserve maintained to manage shortages, disruptions or unexpected demands; strategic reserve, contingency stock, reserve stock, safety stock), import and export controls, anti-hoarding measures (an action or regulation intended to prevent the excessive accumulation of goods that may restrict supply or raise prices; anti-stockpiling action, stock-limit measure, anti-hoarding rule, supply-control measure), and open market operations (the buying and selling of government securities in the open market by a central bank (such as the RBI) to regulate the money supply and credit conditions in the economy). Those need to be used more effectively.

Courtesy: The Hindu

Important Word List With Meaning

1.adequate (adjective)

Hindi Meaning - पर्याप्त, उचित
English Meaning - sufficient, enough, acceptable, satisfactory, requisite.

2.policy review (noun)

Hindi Meaning - नीतिगत समीक्षा, नीति का मूल्यांकन
English Meaning - a systematic evaluation or assessment of ongoing monetary or economic strategy; strategy assessment, policy audit; assessment, evaluation, appraisal, analysis.

3.central assistance (noun)

Hindi Meaning - केंद्रीय सहायता
English Meaning - financial, regulatory, or administrative support provided by the central government; federal support, central funding, state aid, government backing.

4.effectively (adverb)

Hindi Meaning - प्रभावी ढंग से, कारगर तरीके से
English Meaning - efficiently, successfully, productively, fruitfully.

5.inflation (noun)

Hindi Meaning - मुद्रास्फीति, महँगाई
English Meaning - a sustained increase in the general level of prices for goods and services over time, reducing the purchasing power of money; price rise, price escalation, increase in consumer prices, rise in the general price level, cost-of-living increase.

6.watch (verb)

Hindi Meaning - निगरानी रखना, नजर रखना
English Meaning - observe, monitor, keep an eye on, view.

7.Monetary Policy Committee (MPC) (noun)

Hindi Meaning - मौद्रिक नीति समिति
English Meaning - a six-member statutory committee constituted by the Central Government under Section 45ZB of the Reserve Bank of India Act, 1934, to determine the policy rate required to achieve the inflation target.

8.rein in (phrasal verb)

Hindi Meaning - नियंत्रित करना, काबू में रखना
English Meaning - to control or limit something; control, restrict, check, curb.

9.interest rate (noun)

Hindi Meaning - ब्याज दर
English Meaning - the percentage of the principal amount charged for borrowing money or earned on deposited funds over a specified period; rate of interest, borrowing rate, lending rate, cost of borrowing.

10.projection (noun)

Hindi Meaning - अनुमान, पूर्वानुमान
English Meaning - an estimate or forecast of a future situation based on a study of present trends; forecast, prediction, estimate, calculation.

11.ease (verb)

Hindi Meaning - कम होना, नरम पड़ना
English Meaning - to become less serious, severe, or intense; decrease, lessen, diminish, moderate.

12.marginally (adverb)

Hindi Meaning - मामूली रूप से, थोड़ा-सा
English Meaning - to only a limited extent; slightly, somewhat, faintly, barely.

13.cross (verb)

Hindi Meaning - पार करना, से अधिक होना
English Meaning - exceed, surpass, breach, transcend.

14.brief (adjective)

Hindi Meaning - संक्षिप्त, थोड़े समय का
English Meaning - short, fleeting, momentary, short-lived.

15.reprieve (noun)

Hindi Meaning - अस्थायी राहत, थोड़ी देर की मोहलत
English Meaning - a temporary escape or rest from a bad situation; respite, break, relief, breathing space.

16.likely (adverb)

English Meaning - probably; in all probability, presumably, doubtlessly, presumably.

17.wait (verb)

English Meaning - delay, hold back, stand by, bide one’s time.

18.set (adjective)

English Meaning - ready, prepared, or likely to do something; ready, prepared, primed, poised.

19.following (preposition)

English Meaning - coming after or as a result of; subsequent to, after, in the aftermath of, consequent to.

20.barrel (noun)

English Meaning - a unit of volume for crude oil, equivalent to 42 US gallons. A standard unit of volume used for crude oil, equivalent to approximately 159 litres. (1 U.S. liquid gallon equals about 3.785 liters).

21.hold off (phrasal verb)

English Meaning - to delay or postpone an action or decision; delay, postpone, put off, defer.

22.however (adverb)

English Meaning - nevertheless, nonetheless, yet, but.

23.withstand (verb)

English Meaning - to remain undamaged or unaffected by something; resist, endure, weather, tolerate.

24.fiscal pressure (noun)

English Meaning - strain on government finances arising from revenue shortfalls, rising expenditure, budget deficits or borrowing requirements; financial strain, budgetary strain, pressure on public finances, fiscal burden.

25.forever (adverb)

English Meaning - permanently, always, evermore, perpetually.

26.crude (noun)

English Meaning - unrefined petroleum; crude oil, unrefined oil, raw petroleum, fossil fuel.

27.bad enough (phrase)

English Meaning - sufficiently serious, unpleasant or undesirable to cause concern; serious enough, severe enough, troubling enough, sufficiently harmful.

28.spiral (verb)

English Meaning - increase or develop rapidly, often in a way that becomes difficult to control; escalate, intensify, mount, snowball.

29.deficient (adjective)

English Meaning - lacking, wanting, insufficient, inadequate.

30.monsoon (noun)

English Meaning - the rainy season accompanying the seasonal wind of South Asia; rainy season, rains, downpour, precipitation.

31.push up (phrasal verb)

English Meaning - increase, raise, elevate, boost.

32.supply-side (adjective)

English Meaning - relating to the supply of goods and services in an economy; production-related, output-related, manufacturing-side, delivery-side.

33.supply-side factor (noun)

English Meaning - a condition affecting the production or availability of goods and services, thereby influencing prices; supply-side driver, supply factor, production-side factor, cost-side determinant.

34.driver (noun)

English Meaning - cause, factor, determinant, catalyst.

35.second-order (adjective)

English Meaning - indirect or secondary rather than immediate or primary; secondary, indirect, subordinate, derivative.

36.largely (adverb)

English Meaning - to a great extent; mostly, mainly, primarily, principally.

37.marginal (adjective)

English Meaning - having a minor or insignificant effect; slight, small, minimal, negligible.

38.scenario (noun)

English Meaning - situation, context, circumstance, setting.

39.signal (noun)

English Meaning - sign, indication, cue, message.

40.dampen (verb)

English Meaning - to make something less intense; lessen, decrease, diminish, reduce.

41.expectation (noun)

English Meaning - anticipation, belief, assumption, prediction.

42.area of action (phrase)

English Meaning - sphere of activity, field of operation, domain of intervention, zone of work.

43.the near future (phrase)

English Meaning - imminent time, coming days, short term, impending period.

44.self-fulfilling prophecy (noun)

English Meaning - a prediction that causes itself to become true simply because the prediction was made; inevitable outcome, guaranteed result, expected reality, preordained event.

45.self-fulfilling (adjective)

English Meaning - becoming true because the belief or expectation itself helps bring about the expected outcome; self-reinforcing, self-perpetuating, self-realising, self-validating.

46.prophecy (noun)

English Meaning - a prediction about a future event or development; prediction, forecast, foretelling, prognostication.

47.independent (adjective)

English Meaning - free from outside control or influence; separate, distinct, unconnected, unrelated.

48.drive (verb)

English Meaning - to cause or force something to happen or change; propel, push, urge, force.

49.nudge (noun)

English Meaning - a gentle encouragement or push to do something; prompt, push, encouragement, coaxing.

50.rather than (phrase)

English Meaning - instead of, as opposed to, unlike, in place of.

51.calibrated (adjective)

English Meaning - carefully assessed, adjusted, or measured; measured, calculated, regulated, adjusted.

52.tightening (noun)

English Meaning - policy action by a central bank to increase interest rates and reduce liquidity; rate hiking, monetary restriction, liquidity contraction, policy tightening.

53.calibrated tightening (noun)

English Meaning - a measured adjustment towards a more restrictive monetary policy; measured tightening, carefully scaled tightening, calibrated restraint, gradual monetary restraint.

54.neutral (adjective)

English Meaning - impartial, unbiased, non-partisan, objective.

55.no longer (phrase)

English Meaning - not anymore, nevermore, finished, in the past.

56.central bank (noun)

English Meaning - the principal monetary authority of a country, responsible for conducting monetary policy, issuing currency and performing key functions relating to the banking and financial system; monetary authority, apex monetary institution, central monetary authority, reserve bank.

57.tool (noun)

English Meaning - instrument, mechanism, apparatus, device.

58.at one’s disposal (phrase)

English Meaning - available for one to use whenever or however one wishes; available, accessible, on hand, ready for use.

59.keep in check (phrase)

English Meaning - to control and prevent something from getting out of hand; contain, control, limit, curb.

60.tightening (noun)

English Meaning - the restriction of something, especially monetary policy; restriction, squeezing, constriction, clamping down.

61.Gross Domestic Product (GDP) (noun)

English Meaning - the monetary value of all final goods and services produced within a country’s domestic territory during a specified period; measure of domestic output, measure of economic production.

62.forecast (noun)

English Meaning - a prediction or estimate of future events; prediction, projection, estimate, anticipation.

63.that said (phrase)

English Meaning - even so, despite what has just been said; however, nevertheless, nonetheless, even then.

64.even before (phrase)

English Meaning - occurring previously to a particular event; prior to, ahead of, in advance of, previously.

65.predict (verb)

English Meaning - forecast, foretell, foresee, anticipate.

66.slowdown (noun)

English Meaning - a decline in economic activity or growth; deceleration, downturn, decline, slump.

67.growth-inflation (adjective)

English Meaning - relating to the dynamic between economic expansion and rising prices; growth-price, expansion-inflation, output-cost, development-inflation.

68.trade-off (noun)

English Meaning - compromise, balance, equilibrium, accommodation.

69.deftness (noun)

English Meaning - neat and skillful handling; skill, finesse, agility, dexterity, adroitness.

70.pause (verb)

English Meaning - halt, stop, suspend, break.

71.so far (phrase)

English Meaning - up to this point; until now, up to now, to date, hitherto.

72.onus (noun)

English Meaning - responsibility, burden, liability, obligation.

73.food inflation (noun)

English Meaning - the rate at which prices of food items rise over time, commonly measured in India through changes in the Consumer Food Price Index (CFPI); food-price inflation, rise in food prices, increase in food prices, food-price rise.

74.such as (phrase)

English Meaning - for example; like, namely, specifically, to illustrate.

75.strategic buffer (noun)

English Meaning - a reserve maintained to manage shortages, disruptions or unexpected demands; strategic reserve, contingency stock, reserve stock, safety stock.

76.strategic (adjective)

English Meaning - relating to the identification of long-term or overall aims and interests.

77.buffer (noun)

English Meaning - a reserve of a commodity used to offset price fluctuations; reserve, stockpile, cushion, store.

78.anti-hoarding measure (noun)

English Meaning - an action or regulation intended to prevent the excessive accumulation of goods that may restrict supply or raise prices; anti-stockpiling action, stock-limit measure, anti-hoarding rule, supply-control measure.

79.anti-hoarding (adjective)

English Meaning - relating to measures intended to prevent the accumulation of goods, especially food, to create artificial scarcity; anti-stockpiling, hoarding-prevention, anti-amassing, supply-protection.

80.measure (noun)

English Meaning - a plan or course of action taken to achieve a particular purpose; action, step, procedure, initiative.

81.open market operations (noun)

English Meaning - the buying and selling of government securities in the open market by a central bank (such as the RBI) to regulate the money supply and credit conditions in the economy.