Spike in consumer prices could mean no more cuts this fiscal

Expectations of further interest rate cuts in the current fiscal year are fast fading as consumer price inflation (CPI) has stubbornly remained above 6% for eight of the last nine months.

Economists believe that the monetary policy committee (MPC) of the Reserve Bank of India (RBI) may not be able to do much on rates this year even as the central bank faces a challenging task to ensure government bond yields don't spike sharply despite record borrowing by the sovereign.

Figures released on Monday showed that consumer prices rose 6.69% in August, little changed from the 6.73% growth in July. More importantly, it was above the upper 6% set before the MPC for the fifth consecutive month and if not for a blip in March when it came a tad below 6%, it would have forced the MPC to write to the government explaining why inflation went beyond the upper band set by law for three consecutive quarters.

Economists expect inflation to come down below the 6% mark by December as supply side issues, especially on food, are resolved and the economic recovery gathers pace in the third quarter. However, chances of a rate cut this fiscal look remote.

"The stubbornly high inflation has limited the scope for additional rate cuts this fiscal. Although we expect CPI to come down below 4% by Dec, cuts thereafter in Q4 might not meaningfully add to the then ongoing demand recovery," said Saugata Bhattacharya, chief economist at Axis Bank.

Since February 2019, when the current cycle of rate cuts started, RBI has cut its benchmark repo rate by 250 basis points including the 115 basis points since the Covid 19 induced lockdown in March. One basis point is 0.01 percentage point.

Bhattacharya said the central bank has already taken rates to a record low and further cuts may have implications for financial markets as it will dissuade savings and also impact foreign inflows due to lower interest rate differential.

Even as it cannot cut rates further, the central bank has to support higher central and state government borrowings by buying more bonds from the open market and also increasing the borrowing window for state governments.

"The central bank also has to contend with high government borrowing this year and will have to continue to use open market operations to keep yields under check," said A Prasanna, chief economist at ICICI Securities Primary Dealership.

The central government is likely to cross its Rs 7.1 lakh crore gross borrowing in fiscal 2020 in the first half of the current fiscal year itself. Additionally, about Rs 4 lakh crore is being expected to be borrowed in the latter half of the year. The resultant oversupply of paper is likely to hurt investor appetite and lead to an uptick in yields.

To support the government borrowings, RBI which is also the banker to the government, has bought back about Rs 1.2 lakh crores of government bonds through open market operations to keep investors liquid.

It has also announced a Rs 97,000-crore separate window for state governments to borrow to ensure that demand is taken care off outside the market.

Economists say RBI has its task cut out for the rest of the year as it supports the government efforts to revive growth even as it fights to keep a lid on inflation.

"It is a complicated job of keeping inflation under control and at the same time ensuring that the bond and forex markets are orderly. The central bank will use more tools like open market operations and several rounds of operation twist to keep yields under check," said Anubhuti Sahay, chief India economist at Standard Chartered. She was referring to the central bank selling short term paper in exchange for long term debt to keep yields from rising.

To be sure, the banking system liquidity currently at Rs 3.70 lakh crore is sufficient. Economists say more liquidity will not help much but the central bank will have to ensure the market appetite for government securities does not decrease. In other words, the RBI will keep its stance accommodative but will not be able to accommodate much.

Spike in consumer prices could mean no more cuts this fiscal

How To Make Healthy Amaranth And Carrots Biscuits For Your Whole Family (Easy Recipe Inside) - NDTV Food
SEARCH

How To Make Healthy Amaranth And Carrots Biscuits For Your Whole Family (Easy Recipe Inside)

Amaranth carrots biscuits recipe: These homemade cookies are far healthier and tasty too. If you have an oven at home, you should be able to make these biscuits easily.

Neha Grover  |  Updated: September 15, 2020 18:40 IST

Reddit
How To Make Healthy Amaranth And Carrots Biscuits For Your Whole Family (Easy Recipe Inside)

Amaranth cookies recipe is great for healthy diet.

Highlights
  • Amaranth flour is known to be extremely healthy.
  • These amaranth carrots cookies are a must-try.
  • Here's an easy recipe to make it at home.

For a long time, we were stuck to the same flours to make our everyday rotis, breads, desserts and other foods like cookies, dosa and pancakes. Of late, we are waking up to the benefits of switching between different flours and adding healthy, gluten-free grains in our diet. Amaranth or rajgira has amassed enough attention to have us consider making our foods with it. Amaranth flour is fibre-rich and easier to digest. Apart from that, it is rich in antioxidants and anti-inflammatory properties - all coming together to make it the superfood it is now known as. If you tried making your rotis with this flour but your family (kids, we mean) did not like its taste, here's how you can sneak in this healthy flour into their diet - make yummy amaranth and carrot biscuits.

This amaranth flour cookie does not disappoint when it comes to taste. The healthy flour is flanked by carrots, raisins, walnuts, maple syrup, and spices like ginger, cardamom and cinnamon add in their own distinct characteristics. Imagine all these foods with their high-nutrient profile coming together to give you some delicious cookies for tea-time snacks. It's just perfect.

Get rid of processed flours, preservatives, excessive sugar/salt amount and artificial flavours present in store-bought biscuits. These homemade cookies are far healthier and surprisingly tasty too. If you have an oven at home, you should be able to make these biscuits easily without putting in too much effort and time.

(Also Read: How To Make Healthy Atta Biscuits At Home - Find Easy Recipe Inside)

nttjoiv8

Amaranth grain is rich in fibre and easier to digest. 



Here's the complete recipe of amaranth and carrot biscuits with ingredients list and clear baking instructions.

Listen to the latest songs, only on JioSaavn.com

We all want our kids to get plenty of proteins that help build body mass and muscles, and also provide an ample amount of energy to stay active. These protein-rich cookies can do that for you without you having to nudge the kids to eat other foods that they probably wouldn't want to. Amaranth flour contains loads of proteins (13.5 grams per 100 grams, as per the USDA data). With walnuts contributing its own high protein content, this cookie is just what you should be making for your family's snacking time. If you want to make these cookies healthier, skip adding sugar; maple syrup and raisins will sweeten them enough for you to enjoy them.

Gift your family the combined gift of 'taste' and 'health' with these amaranth cookies containing the goodness of carrots and walnuts.
 

Comments

About Neha GroverLove for reading roused her writing instincts. Neha is guilty of having a deep-set fixation with anything caffeinated. When she is not pouring out her nest of thoughts onto the screen, you can see her reading while sipping on coffee.

For the latest food news, health tips and recipes, like us on Facebook or follow us on Twitter and YouTube.
Tags:  Healthy DietAmaranth FlourHealthy Biscuits
High Protein Diet: 5 Interesting Ways To Add <i>Jowar</i> (Sorghum) To Your Diet
High Protein Diet: 5 Interesting Ways To Add Jowar (Sorghum) To Your Diet
Watch: This 10-Minute Berry Mug Cake Is For All Those Sudden Sweet Cravings
Watch: This 10-Minute Berry Mug Cake Is For All Those Sudden Sweet Cravings

Related Recipes

Related Articles:
Advertisement

Sponsored

5 Expert Tips To Keep Your Kitchen Sanitized, Clean And Germ-Free

Our Best Recipes
    Latest Articles
    Advertisement

    Health

    Beauty

    Veg Recipes

    Summer Special

    Indian Recipes

    Benefits

    हिन्दी रेसिपीज़

    © 2020 NDTV Convergence, All Rights Reserved.