Better to rock the boat, to prevent it from sinking.

"The Reserve Bank of India (RBI) Friday kept key policy interest rates and the accommodative monetary stance unchanged as expected to ensure a durable economic recovery but took the first step in winding down the emergency liquidity measures put in place to fight the pandemic induced slowdown," Economic Times (ET). "The RBI has retained its growth forecast at 9.5% for FY22 while revising down its inflation forecast to 5.3% (from 5.7% earlier) given the lower than expected food inflation momentum," ET. "Yes, headline CPI (consumer price index) inflation has already eased to 5.3% y-o-y in August, from a peak of 6.3% in May, and is likely to moderate towards 4% in the next three months, but this is driven by base effects and a drop in vegetable inflation -- the most volatile of CPI components," wrote Sonal Verma. Supply bottlenecks, higher global commodity prices and rising salaries will be passed on in higher prices as demand rises. "Hence, even though food inflation is easing now, core inflation, as measured by CPI excluding food and fuel categories, will remain around 6%, on our assumptions, suggesting elevated underlying pressures," Verma. The US Federal Reserve and the European Central Bank have indicated a gradual reduction in their bond buying programs, or quantitative easing. "Some smaller central banks in countries such as Brazil, Iceland, Mexico, Chile, Russia and Hungary have been increasing interest rates," wrote Niranjan Rajadhyaksha. "Norway recently became the first Western economy to actually increase interest rates rather than soak up excess liquidity." "New Zealand's central bank has raised interest rates for the first time in seven years as it tries to rein in property prices and inflation," BBC. "In August, South Korea became the first major Asian economy to raise interest rates since the coronavirus pandemic began." "The Federal Reserve's preferred inflation gauge" which is "The Personal Consumption Expenditures index continued to climb at its fastest pace since 1991, rising 4.3% in the year through August," ET. "A separate inflation index that is released earlier, the Consumer Price Index, did show some early signs of moderation in August, though it remained elevated, at 5.3%." "A metal made from the second-most abundant element on earth has become scarce, threatening everything from car parts to computer chips and throwing up another hurdle for the world economy," ET. The price of silicon has jumped by 300%. "West Texas Intermediate crude futures, the US oil benchmark, crossed $80 on Friday for the first time since 2014 as demand rebounds while supply remains tight," CNBC. "Oil prices got a boost at the start of the week after OPEC and its allies opted to stick to a prior agreement to raise production by a modest 400,000 barrels per day in November despite a recent fuel shortage." "Global food prices shot up nearly 33% in September 2021 compared with the same period the year before," The Conversation. Analysis of the Food and Agriculture Organisation's (FAO) inflation-adjusted Food Price Index showed that "real global food prices were actually higher than in 2011, when food riots contributed to the overthrow of governments in Libya and Egypt". "Domestic equity benchmarks Sensex and Nifty50 ruled near record highs" as the Governor of the RBI Shaktikanta Das promised not to "rock the boat", ET. India is not the US, or Europe, the RBI is not the US Fed, and the rupee is not the dollar. Better to rock the boat ourselves than let others do it. The boat could sink.