The Hindu Editorial (Salutary reminder) – Mar 15, 2021
With just over two weeks left to the March 31 deadline for the government and RBI to complete the quinquennial review of the current inflation target under the monetary policy framework,… For further reading, visit “The Hindu”. Below is today’s word list-2 for The Hindu Editorial (Salutary reminder) – Mar 15, 2021.
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The Hindu Editorial (Salutary reminder) – Mar 15, 2021:
- salutary (adjective) – good, helpful/useful, beneficial, practical, valuable.
- consumer price index (CPI) (noun) – 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.
- price stability (noun) – 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.
- given (preposition) – considering, taking into account, bearing in mind.
- volatile (adjective) – unpredictable, turbulent, uncertain, inconstant.
- quinquennial (adjective) – relating to something (survey) happening repeatedly at every five years.
- inflation (noun) – simply meaning “cost of living”; an increase of price level of goods & services and vice versa decrease of currency value.
- monetary policy (noun) – 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.
- framework (noun) – structure, system.
- monetary policy framework (noun) – The amended RBI Act explicitly provides the legislative mandate to the Reserve Bank to operate the monetary policy framework of the country. The framework aims at setting the policy (repo) rate based on an assessment of the current and evolving macroeconomic situation; and modulation (change/variation) of liquidity conditions to anchor money market rates at or around the repo rate. Repo rate changes transmit through the money market to the entire the financial system, which, in turn, influences aggregate demand – a key determinant of inflation and growth. Once the repo rate is announced, the operating framework designed by the Reserve Bank envisages liquidity management on a day-to-day basis through appropriate actions, which aim at anchoring the operating target – the weighted average call rate (WACR) – around the repo rate. The operating framework is fine-tuned and revised depending on the evolving financial market and monetary conditions, while ensuring consistency with the monetary policy stance. The liquidity management framework was last revised significantly in April 2016.
- repo rate (noun) – 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.
- reading (noun) – analysis, account, explanation; indication, measurement.
- ceaseless (adjective) – constant, continuous, unending/unrelenting.
- vigil (noun) – vigilance, surveillance, close watch, monitoring.
- retail or consumer price index (CPI) inflation (noun) – 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.
- core inflation (noun) – it is a measure of the total inflation within an economy, excluding commodities such as food and energy prices (which change frequently).
- accelerate (verb) – increase, rise, advance.
- National Statistical Office (NSO) (noun) – The Ministry of Statistics and the Department of Programme Implementation has two wings, one relating to Statistics and the other Programme Implementation. The Statistics Wing called the National Statistical Office (NSO) gives considerable importance to coverage and quality aspects of statistics released in the country. The statistics released are based on administrative sources, surveys and censuses conducted by the Center and State Governments and non-official sources and studies.
- basis point (BPS) (noun) – a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% (1/100th of a percent). Used for measuring change in interest rate/yield.
- attributable to (adjective) – considered as an outcome/result caused by.
- base effect (noun) – it relates to inflation in the corresponding period of the previous year, if the inflation rate was too low in the corresponding period of the previous year, even a smaller rise in the Price Index will arithmetically give a high rate of inflation now.
- relatively (adverb) – comparatively, proportionately, somewhat, to a certain extent/degree.
- ease (verb) – moderate, decrease, lessen, diminish, reduce, lower.
- pose (verb) – constitute, present, create, cause (a problem or danger or risk).
- prognostication (noun) – prediction, forecast, projection.
- pulses (noun) – pulses are the term used for edible dry peas, beans, lentils, chickpeas & etc.
- edible oil (noun) – cooking oil; the fat of plant, animal, or microbial origin, which is liquid at room temperature and is suitable for food use.
- borne out past participle of bear out (phrasal verb) – confirm, validate, vindicate, justify/support (a claim).
- persist (verb) – continue, carry on, keep going.
- disconcertingly (adverb) – unsettlingly, disturbingly, worryingly.
- with respect to (phrase) – concerning, regarding, relating to, with reference to.
- stick (verb) – become fixed, remain in a static/fixed condition.
- deflation (noun) – a decrease in the general price level of goods and services.
- offset (verb) – even up, counterbalance, cancel out, equalize, neutralize.
- generalized (adjective) – not specific or not specialized.
- pressure (noun) – effect, impact; strain, stress, tension, burden.
- food inflation (noun) – the condition of an increase in the wholesale price index of a necessary food item relative to the general index or the consumer price index (CPI) is referred to as food inflation. In layman’s language, it is basically the rise in the cost of an essential food item relative to the previous price.
- wane (verb) – decrease, decline, diminish/dwindle gradually.
- considerably (adverb) – greatly, very much, a lot.
- upshot (noun) – result, consequence, repercussion, outcome/effect.
- beverage (noun) – a drink, such as tea, coffee, liquor, beer, milk, juice, or soft drinks, usually excluding water.
- weight (noun) – value; importance/significance.
- quicken (verb) – speed up, accelerate, step up, hasten.
- worrisome (adjective) – worrying, distressing/upsetting, troublesome.
- inflationary (adjective) – tending to cause monetary inflation.
- trajectory (noun) – track/course, route, path, direction, approach.
- reflect (verb) – indicate, show, demonstrate, exhibit.
- rocket (verb) – increase/rise rapidly, escalate, spiral upwards.
- preceding (adjective) – previous, prior, earlier.
- freight carriage (noun) – goods transporting vehicle.
- Brent crude (noun) – a classification of crude oil produced from the oil platform in the North Sea of Northwest Europe. It is one of the three best known benchmark crude oils (the other two are ‘West Texas Intermediate’ and ‘Dubai’) against which other crude oils are priced. (Crude oil is the raw natural resource that is extracted from the earth and refined into products such as gasoline, jet fuel, diesel and other petroleum products).
- surge (verb) – rise or increase suddenly.
- in the wake of (phrase) – as a result of, in the aftermath of, as a consequence of.
- portent (noun) – sign/indication, forecast, prediction.
- cogently (adverb) – clearly, logically, convincingly.
- lay out (phrasal verb) – outline, draw up, formulate.
- regime (noun) – system.
- Report on Currency and Finance (RCF) (noun) -The Report on Currency and Finance (RCF) has a long and chequered history, intertwined with that of the Reserve Bank of India (RBI) itself and the Indian economy. It was first published in 1937, covering the years 1935-36 and 1936-37. The theme of the current Report is “Reviewing the Monetary Policy Framework” which assumes topical relevance in the context of the review of the inflation target by March 2021 against the backdrop of structural changes in the macroeconomic and financial landscape that have prompted several central banks to undertake policy framework reviews. The period of study in this report is from October 2016 to March 2020 commencing with the formal operationalisation of the flexible inflation targeting (FIT) framework in India but excluding the period of the COVID-19 pandemic in view of data distortions.
- laser-focused (adjective) – paying attention to something (a single activity) intensely (to the exclusion of everything else).
- front and centre (phrase) – in the front line; in the most prominent position.
- quinquennium (noun) – a period or cycle of five years.
- dilute (verb) – weaken, diminish, reduce, decrease, lessen.
- purported (adjective) – alleged, supposed, claimed, professed.
- bid (noun) – attempt, effort, endeavour/try.
- perilous (adjective) – dangerous, risky, precarious, insecure, life-threatening.
- secure (verb) – obtain, acquire, gain, get.
- objective (noun) – aim, intention, purpose, target, goal.
1. Click each one of the words above for their definition, more synonyms, pronunciation, example sentences, phrases, derivatives, origin and etc from http://www.oxforddictionaries.com/.
2. Definitions (elementary level) & Synonyms provided for the words above are my personal work and not that of Oxford University Press. Tentative definitions/meanings are provided for study purpose only and they may vary in different context.
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The Hindu Editorial (Salutary reminder) – Mar 15, 2021: