• Gross domestic product (GDP) growth estimates for the second quarter (Q2) in the United States (US) and euro area (EA) suggest strong economic rebound
  
• Bank of Japan keeps monetary policy stance unchanged; says will avoid premature tightening
  
• International oil prices slow down on supply-and-demand dynamics
  

The shoots of growth are finally breaking through the ground. Q2 real GDP growth numbers of major advanced economies underline the robust recovery from the pandemic. However, the transitory nature of inflation is yet to be fully ascertained given the divergent trends: even as inflation slowed in July in the US, it has perkedup in the EA, United Kingdom (UK) and China.

Hence, the global inflation debate refuses to die down. Major central banks are continuing to adopt a wait-and-watch policy on the recovery before they normalize the monetary policy. Moreover, concerns over fresh waves of Covid-19 have surfaced, yet again.

Amid all this, major central banks are being tracked closely given the ramifications of tighter monetary policy on financial markets and capital flows, particularly in emerging markets such as India.