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'RBI likely to cut policy rates at its June 17 meeting'

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"....more    

China president takes charge of sweeping economic reforms

Beijing: Chinese President Xi Jinping has taken charge of drawing up ambitious reform plans to revitalise the economy, sources close to the government said, shunning policy stimulus for fear it could worsen local government debt and inflate property prices. A consensus had been reached among top leaders that reforms would be the only way to put the world's second-largest economy on a more sustainable footing, said the sources, who are...  

RBI to take note of falling inflation in next policy review

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...  

RBI to take note of lower inflation: Duvvuri Subbarao

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...  

April inflation slows to 4.89 pc, lowest since Nov 2009

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...  

CPI inflation slows to 9.39 per cent in April

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...  

Diesel price hike will result in inflation, make life difficult: Delhi residents

The diesel price was hiked by 90 paise on Friday. ...

Berlusconi tax fraud sentence upheld by Italian court

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...  

RBI listens to 'silent voices' hurt by inflation: Subbarao

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...  

McDonalds India to hike prices amid rising inflation

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...  

Inflation seen range-bound this fiscal, says RBI

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...  

RBI sees 'very limited' room to ease monetary policy

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...  

NCP attacks Congress on costly government flats

Mumbai: The ruling Democratic Front constituent Nationalist Congress Party on Thursday attacked the senior alliance partner Congress over the high prices of flats to be allotted by the government . In a statement, NCP spokesperson Nawab Malik said that the Maharashtra Housing and Area Development Authority (MHADA) appeared to be in a race with private builders by charging exorbitant prices for its tenements, forgetting its primary objective of providing affordable...  

Inflation seen range-bound this fiscal year, says RBI

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...  

'Very limited' room for monetary easing, says RBI

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...  

RBI may sweeten rate cut with lower cash reserve ratio

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...  

Kejriwal's pledge to give power at half the rate impossible: Ashutosh

How far is Arvind Kejriwal's pledge to supply power to people in Delhi at half the current price, if the Aam Aadmi Party is elected to power in Delhi, likely to appeal to voters? Is it a realistic promise or has Kejriwal also resorted to making sky-high promises that all political parties make before the elections? Q. How much truth is there in the story that Arvind Kejriwal is pursuing?...  

AAP cancels protest after phone call from Delhi CM

New Delhi: The Aam Admi Party (AAP) on Sunday said its protest march in the national capital stands cancelled as Chief Minister Sheila Dikshit telephoned a party representative and agreed to accept letters written to her by residents over inflated water and power bills. "We were planning to hold a protest march from Jantar Mantar to the chief minister's residence. But she called up one of the AAP representative today...  

RBI likely to ease policy rate by 0.25 pc: Barclays

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...  

Stimulus packages lead to fiscal deficit and inflation: FM

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...