Inflation and other updates (January 2013)

  • At 7.18% headline inflation is at a three year low
  • Downward movement in the WPI offers respite, the CPI still has an upward movement (10.56%)
  • So there might be limited headroom for the RBI to lower interest rates
  • The Planning Commission has made a case for lower interest rates for attracting investments and reversing the declining trend of economic growth
  • “lowering interest rates and reduction in fiscal deficit is important for the stabilising and growth of the economy.” – Montek

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s