New Delhi: Taking a cue from the continued downward surprises in inflation and sluggish growth indicators, the Reserve Bank of India is likely to go for further monetary easing in its June 17 policy meet, global investment banking majors have said.
The headline wholesale inflation fell to 41-month low in April (4.89 per cent), dropping within the central bank's comfort zone of less than 5 per cent and fuelling market hopes of more monetary easing to revive sagging economic growth.
"We believe the WPI inflation report provides ample room for the RBI to cut policy rates at its June 17 policy meeting," Barclays said in a research note. Barclays further added that "we expect the repo rate to be cut to 7 per cent (another 25 bp cut) by mid-2013. Moreover, we think the likelihood of further rate cuts (another 50bp to 6.50 per cent) in the second half of 2013 has risen significantly"....
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10:40 AM, May 19, 2013
Frankfurt: The Reserve Bank of India (RBI) has said it would take into account falling inflation while deciding on policy initiative in its review next month. "We certainly will take note of the softening of inflation and the external payments situation in the next mid-quarter policy statement on June 17," RBI Governor D Subbarao said at an event in Frankfurt on Tuesday. He said he was happy to see that...
05:35 PM, May 15, 2013
Frankfurt: The Reserve Bank of India will take note of falling inflation when discussing potential interest rate cuts, the central bank's Governor Duvvuri Subbarao said on Tuesday, adding he was very happy about the falling inflation. Asked about potential interest rate cuts in light of falling inflation, Subbarao said they would be taken into account and in future central bankers "will take note of softening inflation." The headline wholesale inflation...
04:46 AM, May 15, 2013
New Delhi: The headline inflation dropped to its lowest since 2009 in the month of April at 4.89 per cent, a level seen comfortable for the RBI to persist with monetary easing to revive a flagging economy. April's reading is well below the 5.50 per cent estimated by analysts in a Reuters poll. The wholesale price index, India's main inflation measure, rose an annual 5.96 per cent in March. The...
12:21 PM, May 14, 2013
New Delhi: After better than expected industrial production numbers, which came at 2.5 per cent for the month of March, inflation has also hit a 13-month low. Consumer Price Index for the month of April is at 9.39 per cent against 10.39 per cent in March. Rural inflation was also seen going down at 9.16 per cent as compared to 10.41 per cent in March. Food prices for consumers rose...
12:40 PM, May 13, 2013
The diesel price was hiked by 90 paise on Friday. ...
09:22 PM, May 11, 2013
Milan: A Milan appeals court upheld a four-year sentence for tax fraud against former prime minister and centre-right leader Silvio Berlusconi on Wednesday, adding to the complications facing Italy's fragile coalition government. In addition to the jail sentence for tax fraud in connection with the purchase of broadcasting rights by his television network Mediaset, the court's ruling would also bar Berlusconi from holding public office for five years. However, neither...
07:40 AM, May 09, 2013
Srinagar: Dismissing the criticism that RBI's steps to check inflation have hurt growth, Reserve Bank Governor D Subbarao on Wednesday said the monetary authority has the responsibility to listen to "silent voices" of millions of people impacted by rising prices. "There is an important constituency in the country that is hurt by inflation. Their voice also needs to be heard. It is the responsibility of public policy institutions like the...
02:45 AM, May 09, 2013
Mumbai: Fast food chain McDonalds Corp plans to increase prices in India for the second time in 2013, responding to rising inflation which, along with an economic slowdown, it expects to temper demand growth for at least the next seven months. The company said on Tuesday it would raise prices by 5-6 per cent. That follows a 5 per cent hike after the government increased the service tax rate in...
07:59 PM, May 07, 2013
Mumbai: Inflation is likely to be range-bound and stay around the current levels in this financial year as supply-side issues, along with recent price adjustments in fuel prices, will offset the recent gains, the Reserve Bank of India said on Thursday. "Headline inflation in 2013-14 is expected to remain range-bound around the current levels," RBI said in its annual Macroeconomic and Monetary Developments report. "While sluggish global growth may dampen...
08:31 AM, May 03, 2013
Mumbai: The Reserve Bank of India (RBI) on Thursday warned of "very limited" space for further easing of monetary policy this fiscal year, striking a hawkish tone a day before it was expected to cut interest rates by 25 basis points for the third time in 2013. The central bank's cautious language in its report on macroeconomic and monetary developments could dent rising market hopes for RBI Governor Duvvuri Subbarao...
08:25 AM, May 03, 2013
Mumbai: Inflation is likely to be range-bound and stay around the current levels in this financial year as supply-side issues, along with recent price adjustments in fuel prices, will offset the recent gains, RBI said on Thursday. "Headline inflation in 2013-14 is expected to remain range-bound around the current levels," RBI said in its annual Macroeconomic and Monetary Developments report. It added: "While sluggish global growth may dampen global inflation...
12:59 AM, May 03, 2013
Mumbai: Dashing expectations of an interest rate cut that have risen because of the recent softening in inflation, as well as decline in crude and gold prices, the Reserve Bank of India on Thursday said there is "very limited" space for that in fiscal 2013-14 because of multiple global and domestic risks, notably inflation. A day before its annual monetary policy statement, the bank released the country's macro economic report...
11:10 PM, May 02, 2013
Mumbai: The Reserve Bank of India may sweeten its expected 25 basis point interest rate cut on Friday with a similar reduction in the cash reserve ratio to ease tight market liquidity conditions as increasingly benign inflation gives it room to manoeuvre. A slowdown in inflation, economic growth languishing at a decade-low 5 per cent and expectations of a lower current account deficit thanks to cooling global commodity prices have...
06:01 AM, May 02, 2013
New Delhi: The Reserve Bank of India is likely to cut rates by 0.25 per cent in its monetary policy review on May 3, driven by falling inflation levels and recent declines in the prices of oil, gold, and the trade deficit, according to a Barclays report. "We expect the central bank to cut rates 50 bp (0.50 per cent) by mid- 2013," Barclays said, adding that RBI is likely...
11:45 AM, Apr 28, 2013
Washington: Finance Minister P Chidambaram on Friday said the three stimulus packages India had provided to the economy in the wake of the global financial crisis post 2008-09 lead to a higher fiscal deficit, inflation and slowdown in growth. He said the government is going to take more steps on the supply side to bring down the inflation and ensure 7 per cent growth rate in 2014. The three stimulus...
03:10 AM, Apr 20, 2013
Mumbai: The drop in headline inflation to a 40-month low of 5.96 per cent for March has increased the possibility of a rate cut by the Reserve Bank at its May 3 annual policy, analysts and rating agencies said on Monday. India Ratings said the cooling off in both core and general inflation readings, coupled with fiscal consolidation and reform measures undertaken by Government, will help RBI Governor Duvvuri Subbarao...
07:33 PM, Apr 15, 2013
New Delhi: Declining price of vegetables pulled down inflation to over three-year low of 5.96 per cent in March, which may prompt the Reserve Bank to consider a rate cut in its annual monetary policy next month. Inflation based on the Wholesale Price Index (WPI) stood at 6.84 per cent in February. In March, 2012, it was 7.69 per cent. The 5.96 per cent March-end inflation is much lower than...
12:33 PM, Apr 15, 2013
New Delhi: Retail inflation declined to 10.39 per cent in March, snapping the five month rising trend, as prices of vegetables and protein based items eased. The Consumer Price Index (CPI) based inflation was at 10.91 per cent in February. The inflation, however, continued to remain in the double digit terrain for the fourth consecutive month in March. The prices in the vegetables basket eased to 12.16 per cent in...
11:41 AM, Apr 12, 2013
The industrial output (IIP) numbers for the month of February have come in better-than expected at 0.6 per cent against an expectation of a contraction. The bounce in the industrial output has come due to contribution from consumer goods sector, which turned positive for the first time in a year at 0.5 percent. Barring consumer goods, all other constituents of industrial output basket have declined. Mining sector, electricity and consumer...
11:32 AM, Apr 12, 2013
