The Hindu Editorial (Tightrope walk) – Aug 09, 2021

Governor Shaktikanta Das’s statement accompanying the RBI’s latest policy announcement highlights the bind that monetary authorities find themselves in. For further reading, visit “The Hindu”. Below is today’s word list-1 for The Hindu Editorial (Tightrope walk) – Aug 09, 2021.

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The Hindu Editorial (Tightrope walk) – Aug 09, 2021:

walk/balance on a tightrope (phrase) – to deal with a difficult situation in which a very small error could have very bad outcomes.
rein in (phrasal verb) – to control, restrain, restrict, limit someone/something.
inflation (noun) – simply meaning “cost of living”; increase of price level of goods & services and vice versa decrease of currency value.
credibility (noun) – trustworthiness, reliability, dependability.
undermine (verb) – weaken, subvert, sabotage, damage.
accompany (verb) – coincide with, coexist with, go along with, appear/occur with.
highlight (verb) – underline, underscore, emphasize.
bind (noun) – predicament, awkward situation, quandary, dilemma, plight, difficult situation.
monetary authority (noun) – it refers to the institution responsible for managing the currency of a country, establishing interest rates, and controlling its money supply. The goals of a country’s central bank include stabilizing prices, fostering economic growth, and increasing employment. The Reserve Bank of India (RBI) is the central bank of India.
find oneself in (verb) – discover, locate, come across, come upon (oneself to be in a specific situation).
the central bank (noun) – The banking regulator of a county’s banking system. The Reserve Bank of India (RBI) is the central bank of India.
benchmark (noun as modifier) – standard, base/basis, ideal.
decade (noun) – a period of ten years.
ample (adjective) – enough, sufficient, adequate, plenty of.
liquidity (noun) – the availability of liquid assets; liquidity means liquid assets; cash; (liquid asset is an asset which can be easily sold/converted into cash without losing its value); a measure of activity (i.e. the ability to buy or sell easily) in a market.
accommodative (adjective) – aimed to encourage economic activity by reducing interest rates.
stance (noun) – position, approach, standpoint.
engender (verb) – cause, give rise to, bring about.
disquietingly (adverb) – distressingly, upsettingly, disturbingly, awfully.
hover around (verb) – remain at a level.
bound (noun) – limits, restrictions, limitations, proportions.
mandated (adjective) – authorized, accepted, designated.
acknowledge (verb) – admit, accept, recognize, realize.
predicament (noun) – problematic situation, difficulty, quandary.
onset (noun) – start, beginning, arrival.
pandemic (noun) – 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.
headline inflation (noun) – it is a measure of the total inflation within an economy, including commodities such as food and energy prices.
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).
inflationary (adjective) – tending to cause monetary inflation.
expectation (noun) – calculation, prediction, forecast, projection.
anchor (verb) – impart/give a firm base/foundation/basis.
consolidate (verb) – strengthen, make stronger, secure, stabilize, reinforce, fortify.
preserve (verb) – sustain, conserve, protect, maintain.
foster (verb) – encourage, promote, develop.
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.
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.
augur well (verb) – bode, indicate, portend (a good outcome).
uncertainty (noun) – unpredictability, unreliability, riskiness/precariousness.
remit (noun) – scope, ambit, area of activity/responsibility; an item/thing for discussion/delibaration.
The monetary policy committee (MPC) (noun) – 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.
set aside (phrasal verb) – discard, abandon, dispense with, cast aside, drop; cancel, dismiss, reject.
in the wake of (phrase) – as a result of, in the aftermath of, as a consequence of.
tool (noun) – mechanism, apparatus, way, means (to perform an activity).
financial stability (noun) – financial stability is a condition where the financial system is able to withstand internal or external economic shocks and also able to smoothly conduct its core tasks.
durable (adjective) – long-lasting, long-term, strong, substantial.
revival (noun) – improvement, rallying, picking up; re-establishment, reintroduction, restoration.
outlook (noun) – prospects, expectations, hopes, likely improvement, lookout, future.
cognisant (adjective) – aware, well informed about, familiar with.
ground reality (noun) – practical condition/situation.
assert (verb) – state, claim, announce, declare firmly.
ebb (verb) – diminish, decrease, fade away, disappear; it also means recede, retreat, flow back, go out.
bounce back (noun) – rebound, quick recovery.
on the back of (phrase) – as a result of, after, subsequent to.
resilient (adjective) – strong, buoyant, quick to recover, flexible.
(be) couple with (verb) – combine, integrate, connect, incorporate, link.
rebound (verb) – recover, rally, pick up.
lag (noun) – delay.
vaccination (noun) – treatment with a vaccine to protect against a particular disease; immunization.
pent-up (adjective) – suppressed, confined, held back, not expressed (emotions/feelings).
pent-up demand (noun) – pent up demand is a build-up of demand for goods and services in an economy where consumers are unable or unwilling to make purchases to satisfy the demand at the present time. Pent up demand happens during periods when consumers are reluctant or unable to make needed or desired purchases. This generally occurs during times of economic uncertainty – such as a recession.
given (preposition) – considering, taking into account, bearing in mind.
underlying (adjective) – fundamental, basic, primary, elementary, intrinsic, essential.
Current Situation Index (CSI) (noun) – The Current Situation Index (CSI) summarizes the consumers’ current perception as compared to a year ago based on GES (General Economic Situation), the employment scenario, the price level, households’ income, and spending.
index (noun) – an (economic) data figure reflecting something (e.g. price/quantity) compared with a standard or base value; pointer, indicator.
stick (verb) – be fixed in a particular level.
Gross domestic product (GDP) (noun) – a measure of economic activity in a country. It is the total value of a country’s annual output of goods and services.
forecast (noun) – prediction, indication, projection, prognosis, speculation, calculation (of future events or trends).
percentage point (noun) – the difference between two percentages is termed as percentage point. (for example: “Interest Rates Jump From 10% to 12%”. In this case, the interest rate increased by “2 percentage points” or you can say that the interest rate is increased by 20%).
belie (verb) – contradict, conceal/cover, disguise, misrepresent, falsify.
deficit (noun) – shortfall, deficiency, shortage.
widen (verb) – increase, amplify, enlarge.
kharif sowing/crops (noun) – monsoon crops; seeds sowing in the beginning (Jun) of the monsoon and harvesting at the end of the season (Oct) in the South Asia.
rabi sowing/crops (noun) – winter crops; seeds sowing in the beginning (Nov) of the winter and harvesting at the end of the season (Apr) in the South Asia.
sowing (noun) – an act of seeding a plant or crop.
composite (adjective) – complex, combined.
Purchasing Managers’ Index (PMI) (noun) – Purchasing Managers Index (PMI) is a monthly business survey data provided by IHS Markit. The monthly data are derived from surveys of senior executives at private sector companies. PMI data is used for accurate and timely insight into the health of a particular economy. The PMI data are used by financial and corporate professionals to better understand where economies and markets are headed, and to uncover opportunities.
persistent (adjective) – continuous, constant, unending, unrelenting, unceasing.
contraction (noun) – In economics, it refers to a decline in national output as measured by gross domestic product.
easing (noun) – lessening, reduction, moderation, decrease.
pressure (noun) – demand.
Inflationary pressure (noun) – the demand and supply-side pressures that can cause a rise in the general price level; cost-push inflation, hot-economy, deficit finance.
cereal (noun) – food grains (rice, wheat, millet, maize &, etc.).
edible oil (noun) – cooking oil; fat of plant, animal or microbial origin, which is liquid at room temperature and is suitable for food use.
admit (verb) – acknowledge, reveal, make known, make public.
fiscal (year) (noun) – financial (year).
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.
dissent (verb) – disagree with, fail to agree with, refuse to support, object to, dispute, challenge.
language (noun) – mode of expression, articulation.
sooner (rather) than later (phrase) – soon, immediately, without delay.
bite the bullet (phrase) – to go through a painful or otherwise unpleasant situation that has been delayed and seen as unavoidable beyond certain stage”. It simply means to accept a difficult decision or situation.