Brief
India’s money supply surges to 17.3% as expert warns of inflation risk
M3 growth hit 17.3% YoY, with six‑month and three‑month annualised rates of 20.2% and 31.5% respectively, sparking concerns about price stability.
By Felo News Desk · Published
India’s broad money supply (M3) expanded 17.3% year‑on‑year, according to the latest data cited by economist Steve Hanke, a rate far above his "Golden Growth Rate" benchmark of 10.2% that he says aligns with the Reserve Bank of India’s 4% inflation target.
Hanke highlighted that the six‑month annualised growth stood at 20.2% and the three‑month annualised pace reached 31.5%, indicating an accelerating expansion of liquidity. He warned that such rapid growth could eventually feed higher consumer prices if it outpaces the economy’s capacity to produce goods and services.
While the RBI has not set an official monetary‑growth target, Hanke noted that faster money‑supply growth does not automatically translate into inflation; the outcome depends on factors like credit demand, money circulation and overall economic activity. He urged close monitoring of price data, credit trends and demand dynamics to gauge any emerging inflationary pressure.
Key facts
- India’s M3 money supply grew 17.3% year‑on‑year. (businesstoday.in)
- Steve Hanke’s Golden Growth Rate for M3 is 10.2% annually. (businesstoday.in)
- Six‑month annualised M3 growth was 20.2% and three‑month annualised growth was 31.5%. (businesstoday.in)
Sources
- [1] businesstoday.in — originally reported as “India’s money supply growth hits 17. 3%: Why expert warns of inflation risks”
