Hindi English Translation || Editorial || Tenuous tack: On RBI’s policy stance

Tenuous tack: On RBI’s policy stance

The RBI must be ready to recalibrate (पुन: जांचना, पुनर्मूल्यांकन) its inflation (मुद्रास्फीति, महंगाई, स्फीति) projections and shift (बदलना,खिसकाना, समायोजित करना) policy stance (मुद्रा, अवस्थिति, दृष्टिकोण)

India’s inflation based on the consumer price index (उपभोक्ता मूल्य सूचकांक) quickened (बढ़ा देना, तेज़ करना) to 6.01% in January, breaching (उल्लंघन करना, तोड़ना) the central bank’s (केंद्रीय बैंक) upper tolerance (सहनशीलता, सहिष्णुता, उदारता) limit of 6%. While the headline number was no surprise given (देखते हुए, ध्यान में रखना, विचार करना) that the RBI had forecast (पूर्वानुमान, भविष्यवाणी, परियोजना) the acceleration (तेज करना, बढ़ाना), the official data merit scrutiny. Provisional estimates show the hinterland (remote areas of a country away from the coastal areas/the banks of major rivers), with its greater proportion (part, portion, percentage; ratio, distribution) of the country’s poor, bore the brunt of rising food prices with rural food price inflation (the rise in the prices of most goods and services of food & related things) sprinting to 5.18% from December’s 3.39%. Oils and fats quickened the fastest at 18.7%. Though the RBI had been expected to start normalising (alter, regulate, fine-tune, calibrate) its pandemic-era policy stance in February’s monetary policy (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) meeting and reaffirm its resolve (decide, determine, take a decision) to contain (control, curb, keep under control, restrain, limit) inflation, the central bank retained (maintain, keep, continue) the status quo in order to support economic growth. Governor Shaktikanta Das has defended the RBI’s projection (प्रक्षेपण, पूर्वानुमान, भविष्यवाणी) for inflation to slow to 4.5% in FY23 by citing the base effect as the cause for higher headline (relating to a rate of inflation based on the consumer price index (CPI)) inflation this fiscal (financial (year)), and predicted that a similar base effect would help enable a downtrend (decline, downturn, slump) in the coming months. The RBI’s assumptions, however, could unravel (fall apart, come apart, fail, collapse, go wrong; undo, untie) if storm ((figuratively) trouble, disturbance, controversy) clouds on the horizon (imminent, impending, approaching, near/close, just around the corner) intensify. Uncertainty (unpredictability, unreliability, riskiness/precariousness) over the Ukraine-Russia tensions (strained relations; strain, stress, pressure, unease) pushed global crude prices to a seven-year high earlier this week.

January’s inflation in transport and communications, which reflects retail fuel prices, slowed a mite from December but was still at 9.36%. Pump prices have stayed static for a while, a likely effect of the poll season. The Centre may soon have to allow oil marketers to pass (transfer, hand over, transmit) on the global price increase to consumers, which could spur (stimulate, encourage, prompt, galvanize) inflation further, or cut (reduce, decrease, lessen) excise duties (the taxes levied on the manufacture of goods within the country, (as opposed to custom duty that is levied on goods coming from outside the country)), resulting in (cause, bring on, bring about) lower revenue for the exchequer (treasury, coffers; funds/resources/finances). Add to this mix (to add another idea to an ongoing discussion), the uneven economic recovery from the pandemic and the outlook (prospects, expectations, hopes, likely improvement, lookout, future) gets even more cloudy. IHS Markit’s monthly survey of purchasing managers shows that though manufacturing output and new orders expanded last month, growth rates eased (reduce, moderate, lessen, decrease). Uncertainty around growth prospects (possibility, chance, probability, likelihood) stemmed from concerns about inflationary (tending to cause monetary inflation) pressures (demand). The RBI’s January survey shows households (family, house) expect inflation at 10.7% a year ahead. Though this is a comforting decline from the 12.6% seen in November, the significant gap between the RBI’s projections and households’ views suggests consumers’ perceptions (understanding, discernment, recognition/realization; interpretation) of price gains are markedly (noticeably, decidedly, distinctly, remarkably, clearly) higher and could likely constrain (restrict, limit, control, restrain) their spending. This is undesirable as the NSO’s advance estimates of GDP growth for the current fiscal show private consumption expenditure still lagging behind (trail, straggle, fall behind, move slowly) the pre-pandemic (before the pandemic) level of FY20. Any worsening (deterioration, aggravating, compounding, intensification) on this front a particular condition/situation() could challenge the RBI’s objective of holding down interest rates to support growth. With Governor Das asserting that 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) remains the prime focus, the RBI must be ready to rapidly recalibrate its inflation projections and shift policy stance to match its mandate (instruction, direction, order, requirement), or risk (cause, bring on, bring about, result in (a bad or unfortunate event)) hurting its credibility (trustworthiness, reliability, dependability).

Courtesy: The Hindu

Important Word List With Meaning

1.tenuous (adjective)

Hindi Meaning - तुच्छ, छोटा
English Meaning - slight, insubstantial, negligible, weak/shaky; doubtful, dubious, questionable, vague, unspecific, indefinite.

2.stance (noun)

Hindi Meaning - मुद्रा, अवस्थिति, दृष्टिकोण
English Meaning - point of view, approach, standpoint.

3.recalibrate (verb)

Hindi Meaning - पुन: जांचना, पुनर्मूल्यांकन
English Meaning - reevaluate, reassess, revamp.

4.inflation (noun)

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

5.projection (noun)

Hindi Meaning - प्रक्षेपण, पूर्वानुमान, भविष्यवाणी
English Meaning - forecast, prediction, estimation, calculation.

6.shift (verb)

Hindi Meaning - बदलना,खिसकाना, समायोजित करना
English Meaning - change, alter, adjust, amend, recast, revise.

7.Consumer Price Index (CPI) (noun)

Hindi Meaning - उपभोक्ता मूल्य सूचकांक
English Meaning - The CPI looks at the basket of consumer goods and services and it measures the change in price of this basket over a period of time. To put it simply, the CPI monitors retail prices at a certain level for a particular commodity.

8.Wholesale Price Index (WPI)(noun)

Hindi Meaning - थोक मूल्य सूचकांक
English Meaning - The WPI looks at a basket of wholesale goods (goods purchased in large quantities by businesses directly from manufacturers with the intent of reselling them to retailers). the WPI tracks prices at the factory gate before the retail level.

9.quicken (verb)

Hindi Meaning - बढ़ा देना, तेज़ करना
English Meaning - increase, speed up, accelerate, expedite, step up, advance.

10.breach (verb)

Hindi Meaning - उल्लंघन करना, तोड़ना
English Meaning - break, contravene, violate.

11.the central bank (noun)

Hindi Meaning - केंद्रीय बैंक
English Meaning - The banking regulator of a county’s banking system. (e.g. The Reserve Bank of India (RBI) is the central bank of India).

12.tolerance (noun)

Hindi Meaning - सहनशीलता, सहिष्णुता, उदारता
English Meaning - deviation, fluctuation, variation.

13.given (preposition)

Hindi Meaning - देखते हुए, ध्यान में रखना, विचार करना
English Meaning - considering, taking into account, bearing in mind.

14.forecast (verb)

Hindi Meaning - पूर्वानुमान, भविष्यवाणी, परियोजना
English Meaning - predict, project, estimate.

15.acceleration (noun)

Hindi Meaning - तेज करना, बढ़ाना
English Meaning - increase, quickening, stepping up.

16.tack (noun)

English Meaning - approach, way, method; course of action, policy.

17.index (noun)

English Meaning - an (economic) data figure reflecting something (e.g. price/quantity) compared with a standard or base value; pointer, indicator.

18.headline (adjective)

English Meaning - relating to a rate of inflation based on the consumer price index (CPI).

19.headline inflation (noun)

English Meaning - it is a measure of the total inflation within an economy, including commodities such as food and energy prices.

20.hinterland (noun)

English Meaning - remote areas of a country away from the coastal areas/the banks of major rivers.

21.proportion (noun)

English Meaning - part, portion, percentage; ratio, distribution.

22.bear the brunt (phrase)

English Meaning - to suffer or endure the worst part of something (force/burden/pressure) when a very bad or unpleasant thing happens.

23.food price inflation (noun)

English Meaning - the rise in the prices of most goods and services of food & related things.

24.sprint (verb)

English Meaning - speed (up), rush, shoot (up), increase.

25.normalise (verb)

English Meaning - alter, regulate, fine-tune, calibrate

26.pandemic (noun)

English Meaning - the worldwide spread of a new disease; The illness spreads around the world and typically affects a large number of people across a wide area.

27.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.

28.reaffirm (verb)

English Meaning - assert, state, say again strongly.

29.resolve (verb)

English Meaning - decide, determine, take a decision.

30.contain (verb)

English Meaning - control, curb, keep under control, restrain, limit.

31.retain (verb)

English Meaning - maintain, keep, continue.

32.fiscal (noun)

English Meaning - financial (year).

33.enable (verb)

English Meaning - allow, permit, facilitate.

34.downtrend (noun)

English Meaning - decline, downturn, slump.

35.assumption (noun)

English Meaning - thought, belief, notion, conclusion, impression.

36.unravel (verb)

English Meaning - fall apart, come apart, fail, collapse, go wrong; undo, untie.

37.storm (noun)

English Meaning - (figuratively) trouble, disturbance, controversy.

38.storm cloud (noun)

English Meaning - (figuratively) a threatening situation/condition.

39.on the horizon (phrase)

English Meaning - imminent, impending, approaching, near/close, just around the corner.

40.intensify (verb)

English Meaning - increase, escalate, raise; aggravate, exacerbate, compound.

41.uncertainty (noun)

English Meaning - unpredictability, unreliability, riskiness/precariousness.

42.tension (noun)

English Meaning - strained relations; strain, stress, pressure, unease.

43.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.

44.pass (on) (verb)

English Meaning - transfer, hand over, transmit.

45.spur (verb)

English Meaning - stimulate, encourage, prompt, galvanize.

46.cut (verb)

English Meaning - reduce, decrease, lessen.

47.excise duty (noun)

English Meaning - the taxes levied on the manufacture of goods within the country, (as opposed to custom duty that is levied on goods coming from outside the country).

48.result in (phrasal verb)

English Meaning - cause, bring on, bring about.

49.exchequer (noun)

English Meaning - treasury, coffers; funds/resources/finances.

50.add to the mix (phrase)

English Meaning - to add another idea to an ongoing discussion.

51.outlook (noun)

English Meaning - prospects, expectations, hopes, likely improvement, lookout, future.

52.ease (verb)

English Meaning - reduce, moderate, lessen, decrease.

53.prospect (noun)

English Meaning - possibility, chance, probability, likelihood.

54.stem from (phrasal verb)

English Meaning - originate from, arise/come from, emanate from.

55.Inflationary/price/cost 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.

56.inflationary (adjective)

English Meaning - tending to cause monetary inflation.

57.pressure (noun)

English Meaning - demand.

58.household (noun)

English Meaning - family, house.

59.comforting (adjective)

English Meaning - reassuring, relieving, heartening, uplifting, encouraging.

60.perception (noun)

English Meaning - understanding, discernment, recognition/realization; interpretation.

61.markedly (adverb)

English Meaning - noticeably, decidedly, distinctly, remarkably, clearly.

62.constrain (verb)

English Meaning - restrict, limit, control, restrain.

63.private consumption or consumption expenditure (noun)

English Meaning - the spending by households (consumers) on goods and services, excluding new housing.

64.lag behind (verb)

English Meaning - trail, straggle, fall behind, move slowly.

65.pre-pandemic (noun)

English Meaning - before the pandemic.

66.worsening (noun)

English Meaning - deterioration, aggravating, compounding, intensification.

67.front (noun)

English Meaning - a particular condition/situation.

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.mandate (noun)

English Meaning - instruction, direction, order, requirement.

70.risk (verb)

English Meaning - cause, bring on, bring about, result in (a bad or unfortunate event).

71.credibility (noun)

English Meaning - trustworthiness, reliability, dependability.