Hindi English Translation || Editorial || Pause and effect: On the temporary pause to inflation-battling monetary tightening

Pause and effect: On the temporary pause to inflation-battling monetary tightening

Developments in the global financial system have given the Reserve Bank of India cause for pause (विराम, अस्थायी ठहराव)

The Reserve Bank of India’s Monetary Policy Committee (MPC) (मौद्रिक नीति समिति) has unanimously (सर्वसम्मति से) and wisely decided to apply a temporary pause to its inflation (मुद्रा स्फ़ीति)-battling monetary tightening by keeping the repo rate (it is the rate at which the central bank of a country (RBI in case of India) lends money to commercial banks in the event of any shortfall of funds) unchanged. RBI Governor Shaktikanta Das was emphatic (ज़ोरदार, निश्चित) in stressing that the decision to pause was “for this meeting only”, underlining (रेखांकित करना) the commitment to ensuring that retail inflation is progressively (उत्तरोत्तर, क्रमाशः) aligned (place, position, orient, put in place) to the mandated (अनिवार्य, आवश्यक) target of 4%. Clearly, developments in the global financial system, particularly the banking sector turmoil (उथल-पुथल, हलचल) and the volatility (अस्थिरता, अप्रत्याशितता) and uncertainty (अनिश्चितता, अप्रत्याशितता) they have triggered (cause, give rise to, lead to, bring about, generate, provoke, stir up), have weighed heavily on policymakers’ decision to wait and watch. Notwithstanding (के बावजूद, ऐसा होते हुए भी) his assertions (claim, affirmation, opinion, declaration, statement, contention) that India’s ‘banking and non-banking financial service sectors remain healthy and economic activity remains resilient (लचीला)’, it is the spectre (threat, menace, danger/peril) of rising credit costs posing risks to both consumption demand (खपत की मांग) and private investment that was a key factor in the World Bank’s (The World Bank is an international development organization owned by 187 countries. Its role is to reduce poverty by lending money to the governments of its poorer members to improve their economies and to improve the standard of living of their people. The World Bank was established in 1944 to help rebuild Europe and Japan after World War II. Its official name was the International Bank for Reconstruction and Development (IBRD)) calculus (calculation) earlier this week, when it cut India’s 2023-24 growth forecast to 6.3%. With the global economy still facing headwinds ((in business) situations or conditions that make growth harder/difficult. Whereas tailwinds describe a situation or condition that will move growth, revenues, or profits higher) including from unabated (continuous, continuing, unending uninterrupted, non-stop, unrelenting, persistent) geopolitical tensions, which the World Bank warned could result in (lead to, cause, bring on, bring about, give rise to) a recession (economic decline, slowdown, downturn, depression, slump) were more shocks (disturbance causing volatility/uncertainty in an economy) to occur, the RBI’s policymakers have judiciously (wisely, sensibly, prudently, thoughtfully, well-advisedly) chosen to subordinate their concerns over inflation, for now, so as to (in order to) ensure the growth momentum (the increase in the rate of growth of something; strength, impetus) is not undermined (weaken, subvert, sabotage, damage).

Still, monetary authorities (officials, officialdom, the people in charge, the government the bureaucracy) have only a small window (opportunity, chance, opening) in which to see if their prognostication (prediction, forecast, projection) of a moderation (reduction, easing, lessening, decrease) in inflation is indeed (in fact, actually, undeniably) starting to pan out (work out, turn out well, succeed, be successful). With Mr. Das acknowledging that core inflation (it is a measure of the total inflation within an economy, excluding commodities such as food and energy prices (which change frequently)) remains elevated across a range of goods and services and unyielding (resolute, determined, inflexible, uncompromising, unyielding, unflagging; unceasing, persistent, unrelenting), the MPC faces a challenge in its mandate (instruction, direction, command, order) of achieving durable disinflation (decrease in the rate of inflation). As the RBI’s latest Monetary Policy Report notes, upside risks to the inflation outlook (chances, possibilities, expectations, prospects, future) emanate from factors including higher global crude and commodity prices and extreme weather conditions and deficient (insufficient, meagre, inadequate) monsoon rains. Already, as Mr. Das acknowledged (accept, recognize, realize), the sudden recent announcement of an output cut by OPEC+ producers had resulted in a jump in crude prices, which could well upset the RBI’s assumption (speculation, conjecture, supposition, prediction, guesswork, surmise, opinion, ) of crude averaging $85 a barrel (for the Indian basket) this year. Similarly, the outlook for food prices too is beset (trouble, bother, worry, anguish, embarrass (persistently)) with uncertainty given (considering, taking into account, bearing in mind) the unseasonal rains in parts of the country combined with the likelihood (chance, possibility, hope, potential, potentiality) of an El Niño, which could raise summer temperatures and depress (reduce, lower, weaken, diminish, inhibit) monsoon rainfall. Additionally, the RBI sees milk prices staying firm over the coming months amid (in the middle of, surrounded by; during) fodder (fodder generally means food, particularly dried hay or straw, for cattle and other livestock)) cost pressures. Policymakers must remember, as the RBI chief so pithily (concisely) said, price stability (no (drastic) change in the price of goods and services in an economy over a period of time. It implies avoiding both prolonged inflation and deflation) still remains “the best guarantee for sustainable (defensible, justifiable, defendable, supportable, acceptable) growth”.

Courtesy: The Hindu

Important Word List With Meaning

1.pause (noun)

Hindi Meaning - विराम, अस्थायी ठहराव
English Meaning - temporary stoppage, break, interval.

2.inflation (noun)

Hindi Meaning - मुद्रा स्फ़ीति
English Meaning - simply meaning “cost of living”; increase of price level of goods & services and vice versa decrease of currency value.

3.The monetary policy committee (MPC) (noun)

Hindi Meaning - मौद्रिक नीति समिति
English Meaning - it is a six-member panel that is expected to bring “value and transparency” to rate-setting decisions. It will feature three members from the RBI — the Governor, a Deputy Governor and another official — and three independent members to be selected by the Government. The MPC will meet four times a year to decide on monetary policy by a majority vote.

4.unanimously (adverb)

Hindi Meaning - सर्वसम्मति से
English Meaning - without opposition, agreed to (by everyone involved).

5.emphatic (adjective)

Hindi Meaning - ज़ोरदार, निश्चित
English Meaning - certain, clear, decided, firm, determined, assertive, insistent, outright, one hundred per cent, categorical, unequivocal, unambiguous.

6.underline (verb)

Hindi Meaning - रेखांकित करना
English Meaning - emphasize, stress, highlight, underscore, draw attention to.

7.consumer price index (CPI) (noun)

Hindi Meaning - उपभोक्ता मूल्य सूचकांक
English Meaning - it is defined as the change in the prices of a basket of goods and services that are typically purchased by specific groups of households. To put it simply, it tracks the prices of goods and services purchased by consumers.

8.progressively (adverb)

Hindi Meaning - उत्तरोत्तर, क्रमाशः
English Meaning - steadily, gradually, in step by step manner.

9.mandated (adjective)

Hindi Meaning - अनिवार्य, आवश्यक
English Meaning - required, requisite, imperative, necessary, obligatory, binding, compulsory.

10.turmoil (noun)

Hindi Meaning - उथल-पुथल, हलचल
English Meaning - disorder, turbulence, confusion, trouble, chaos.

11.volatility (noun)

Hindi Meaning - अस्थिरता, अप्रत्याशितता
English Meaning - unpredictability, instability, unreliability.

12.uncertainty (noun)

Hindi Meaning - अनिश्चितता, अप्रत्याशितता
English Meaning - unpredictability, unreliability, riskiness/precariousness.

13.notwithstanding (preposition)

Hindi Meaning - के बावजूद, ऐसा होते हुए भी
English Meaning - despite, in spite of, regardless of.

14.resilient (adjective)

Hindi Meaning - लचीला
English Meaning - strong, sturdy, stout/well built, durable.

15.consumption demand (noun)

Hindi Meaning - खपत की मांग
English Meaning - the demand for goods and services by individuals and households in the economy.

16.tightening (noun)

English Meaning - an act of making something stricter/rigorous.

17.monetary policy (noun)

English Meaning - monetary policy refers to the use of monetary instruments under the control of the central bank to regulate magnitudes such as interest rates, money supply, and availability of credit with a view to achieving the ultimate objective of economic policy mentioned in the Reserve Bank of India Act, 1934.

18.repo rate (noun)

English Meaning - it is the rate at which the central bank of a country (RBI in case of India) lends money to commercial banks in the event of any shortfall of funds.

19.headline retail inflation (noun)

English Meaning - it is a measure of the total inflation within an economy, including commodities such as food and energy prices. The CPI monitors retail prices at a certain level for a particular commodity. The change in the price index over a period of time is referred to as CPI-based inflation, or retail inflation.

20.core inflation (noun)

English Meaning - it is a measure of the total inflation within an economy, excluding commodities such as food and energy prices (which change frequently).

21.align (verb)

English Meaning - place, position, orient, put in place.

22.trigger (verb)

English Meaning - cause, give rise to, lead to, bring about, generate, provoke, stir up.

23.weigh on (phrasal verb)

English Meaning - burden, trouble, bother, worry, trouble, afflict, beset; be burdensome to.

24.wait and see/watch (phrase)

English Meaning - to wait calmly for a good opportunity to do something; be patient, stand by, hold back, bide one’s time.

25.assertion (noun)

English Meaning - claim, affirmation, opinion, declaration, statement, contention.

26.spectre (noun)

English Meaning - threat, menace, danger/peril.

27.World Bank (noun)

English Meaning - The World Bank is an international development organization owned by 187 countries. Its role is to reduce poverty by lending money to the governments of its poorer members to improve their economies and to improve the standard of living of their people. The World Bank was established in 1944 to help rebuild Europe and Japan after World War II. Its official name was the International Bank for Reconstruction and Development (IBRD).

28.calculus (noun)

English Meaning - calculation.

29.forecast (noun)

English Meaning - prediction, indication, projection, prognosis, speculation, calculation (of future events or trends).

30.headwinds (noun)

English Meaning - (in business) situations or conditions that make growth harder/difficult. Whereas tailwinds describe a situation or condition that will move growth, revenues, or profits higher.

31.unabated (adjective)

English Meaning - continuous, continuing, unending uninterrupted, non-stop, unrelenting, persistent.

32.tensions (noun)

English Meaning - strained relations, strain, unease.

33.result in (verb)

English Meaning - lead to, cause, bring on, bring about, give rise to.

34.recession (noun)

English Meaning - economic decline, slowdown, downturn, depression, slump.

35.shock (noun)

English Meaning - disturbance causing volatility/uncertainty in an economy.

36.judiciously (adverb)

English Meaning - wisely, sensibly, prudently, thoughtfully, well-advisedly.

37.subordinate (verb)

English Meaning - treat, regard, consider something (as of lesser importance).

38.so as to (phrase)

English Meaning - in order to.

39.momentum (noun)

English Meaning - the increase in the rate of growth of something; strength, impetus.

40.undermine (verb)

English Meaning - weaken, subvert, sabotage, damage.

41.authorities (noun)

English Meaning - officials, officialdom, the people in charge, the government the bureaucracy.

42.window (noun)

English Meaning - opportunity, chance, opening.

43.prognostication (noun)

English Meaning - prediction, forecast, projection.

44.moderation (noun)

English Meaning - reduction, easing, lessening, decrease.

45.indeed (adverb)

English Meaning - in fact, actually, undeniably.

46.pan out (phrasal verb)

English Meaning - work out, turn out well, succeed, be successful.

47.acknowledge (verb)

English Meaning - accept, recognize, realize.

48.elevated (adjective)

English Meaning - increased, raised.

49.unyielding (adjective)

English Meaning - resolute, determined, inflexible, uncompromising, unyielding, unflagging; unceasing, persistent, unrelenting.

50.mandate (noun)

English Meaning - instruction, direction, command, order.

51.disinflation (noun)

English Meaning - decrease in the rate of inflation.

52.outlook (noun)

English Meaning - chances, possibilities, expectations, prospects, future.

53.emanate from (verb)

English Meaning - originate from, come from, be rooted in, proceed from, result from.

54.crude oil (noun)

English Meaning - the raw natural resource that is extracted from the earth and refined into products such as gasoline, jet fuel, diesel and other petroleum products.

55.deficient (adjective)

English Meaning - insufficient, meagre, inadequate.

56.Organization of Petroleum Exporting Countries (OPEC) (noun)

English Meaning - an organization of nations that produce and sell oil and which tries to keep the price of oil at a suitable level.

57.assumption (noun)

English Meaning - speculation, conjecture, supposition, prediction, guesswork, surmise, opinion, presumption.

58.Indian Basket (IB) (or) Indian Crude Basket (noun)

English Meaning - The Indian crude oil basket is derived from sour grade (Oman and Dubai average) and sweet grade (Brent) of crude oil processed at Indian refineries in the ratio of 75.50:24.50. It is used for the purpose of macro-economic calculations as petroleum product prices are linked to their own market.

59.beset (verb)

English Meaning - trouble, bother, worry, anguish, embarrass (persistently).

60.given (preposition)

English Meaning - considering, taking into account, bearing in mind.

61.likelihood (noun)

English Meaning - chance, possibility, hope, potential, potentiality.

62.El Nino (noun)

English Meaning - an unusual/abnormal warming of the waters across the central and eastern equatorial Pacific that lies closer to the Americas). La Niña means abnormal cooling.

63.depress (verb)

English Meaning - reduce, lower, weaken, diminish, inhibit.

64.amid (preposition)

English Meaning - in the middle of, surrounded by; during.

65.fodder (noun)

English Meaning - fodder generally means food, particularly dried hay or straw, for cattle and other livestock).

66.cost/price pressures (noun)

English Meaning - the demand and supply-side pressures that can cause a rise in the general price level; cost-push inflation, hot-economy, deficit finance.

67.pithily (adverb)

English Meaning - concisely.

68.price stability (noun)

English Meaning - no (drastic) change in the price of goods and services in an economy over a period of time. It implies avoiding both prolonged inflation and deflation.

69.sustainable (adjective)

English Meaning - defensible, justifiable, defendable, supportable, acceptable.