In its Annual Report 2012-13, Reserve Bank of India (RBI) raised concern about rising food and fuel prices, which may put upward pressure on Wholesale Price Index (WPI) and Consumer Price Index (CPI). Owing to the rise in food and fuel inflation, WPI rose to 5.8 percent in July 2013
Tag: inflation
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RBI hopes for growth prospects, cautious on Re fall
The continuously falling rupee would bring pressure on the country's inflation, the Reserve Bank of India (RBI) has cautioned on August 22. However, the apex bank provided some hope on economic growth by stating that it expected the inflation to be more than the five per cent of last financial year.
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RBI study favours anti-inflation policy
Citing a study, Reserve Bank India (RBI) said it cannot pursue a policy of higher inflation tolerance as the means to lower real rates because beyond a threshold, the negative impact of inflation on growth outweighs its positive impact. Although the study points to empirical evidence that lower real interest rates can stimulate growth and investment, it does not recommend a policy of higher infla
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RBI study favours anti-inflation policy
Citing a study, Reserve Bank India (RBI) said it cannot pursue a policy of higher inflation tolerance as the means to lower real rates because beyond a threshold, the negative impact of inflation on growth outweighs its positive impact. Although the study points to empirical evidence that lower real interest rates can stimulate growth and investment, it does not recommend a policy of higher infla
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Banks may not raise rates despite RBI move
Even as some analysts are reading the recent steps by the Reserve Bank of India (RBI) to stem depreciation of rupee as monetary tightening, several banks are thinking otherwise. In order to curb speculative position in foreign exchange market and also to promote investment in rupee debt instruments, RBI hiked the rate on borrowing from marg
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Economic growth may take a hit from RBI steps; experts
Several brokerages and economists expect the Indian economy to grow at a lower pace in 2013-14 than what was anticipated earlier because of the recent measures by Reserve Bank of India (RBI) to combat depreciation of rupee. Economists and brokerages feel that RBI's recent measures to control rupee weakness may impede growth
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Indian economy may grow 6% in FY14: Deutsche Bank
A report by Deutsche Bank says the Indian economy may grow at a rate of 6 percent in 2013-14, compared to 5 percent in the previous financial year. The foreign brokerage expects the current account deficit (CAD), which touched a record high of 4.8 per cent in 2012-13, to decline to 3.8 per cent in the current financial year on the back of softening commodity prices
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WPI inflation falls to 42-month low of 4.7%
Inflation as measured by the Wholesale Price Index (WPI) declined to a 42-month low of 4.7 per cent in May 2013 from 4.89 per cent in the previous month and 7.55 per cent in May 2012. The decline in the prices of manufactured items helped inflation to ease in May even as the price level of food articles rose. The prices of manufactured items declin
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RBI refrains from reducing policy rate, keeps CRR unchanged
A resolute Reserve Bank of India (RBI) refrained from reducing policy repo rate in its mid-quarter review of monetary policy on June 17, 2013 citing the persistently high food inflation even though general inflation has declined. Thus, the policy repo rate under the liquidity adjustment facility (LAF) remains unchanged at 7.25 per cent and the reverse repo rate remains at 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 8.25 per cent. The central bank also kept
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World Bank expects Indian economy to grow 5.7% in FY14
World Bank expects India's GDP at factor cost to grow 5.7 per cent in 2013-14 and then accelerate to 6.5 per cent and 6.7 per cent in the two subsequent financial years, respectively. The multilateral lending agency said this in its Global Economic Prospects report released recently. In 2012-13, the economy expanded at a decade-low pace of 5 percent. The report notes that growth in South Asia would primarily be driven by an estimated pick-