Arab Today, arab today india central bank seen holding rates steady
Last Updated : GMT 14:10:26
Arab Today, arab today
Arab Today, arab today

India central bank seen holding rates steady

Arab Today, arab today

Arab Today, arab today India central bank seen holding rates steady

India central bank
Mumbai - AFP

India's hawkish central bank was widely expected to keep interest rates unchanged Tuesday at its first monetary policy-setting meeting since new pro-growth prime minister Narendra Modi took office.
Business leaders have called for lower borrowing costs to spur an economy which expanded by 4.7 percent last year -- the lowest level in nearly a decade, and half the rate seen during India's boom years.
But, with consumer inflation nudging 10 percent and fears that a weak monsoon could push food prices higher, the Reserve Bank of India (RBI) has scant scope to loosen monetary policy, economists say.
The Association of Chambers of Commerce and Industry of India (Assocham) said the central bank might cut rates by a "symbolic" 25-basis points, but economists disagreed.
"The RBI has no choice but to remain vigilant on inflation," said Frederic Neumann, co-head of Asian Economic Research at HSBC.
Economists widely expect the central bank to keep its trend-setting repo rate -- at which the RBI lends to commercial banks -- on hold at eight percent at Tuesday's policy meeting.
"I strongly feel the central bank will hold rates steady," said Bank of Baroda chief economist Rupa Rege Nitsure.
Analysts say the central bank's strong anti-inflation policies may clash with Modi's aim of reviving the economy
Central bank chief Raghuram Rajan, a former International Monetary Fund chief economist, has hiked interest rates three times since taking the helm last September.
Rajan has set a goal of achieving "low and stable inflation" in order to achieve what he calls "sustainable growth".
Modi swept to victory last month, ousting the left-leaning Congress, and he faces huge public expectations to live up to election promises of "better days ahead".
The Indian economy's sub-five-percent growth for two straight years represents the country's "worst economic slowdown since 1985", said Deepak Lalwani, head of India-focused consultancy Lalcap.
"The RBI and the government may not be on the same page," said Anjali Verma, an economist at financial services firm PhillipCapital.
Some experts have suggested Rajan could be under threat from Modi's Bharatiya Janata Party government, with the bank governor coming in for criticism from the party before the election for keeping rates high.
But, at a conference in Tokyo last week, Rajan denied any discord with the government.
There is "often a tendency to try and find a wedge between the two and widen the wedge", he said.
The RBI governor's policies have been widely credited with helping to narrow India's current account deficit -- the widest measure of trade -- and restoring the rupee's stability after the currency slid.
"Rajan is well respected through the global investor community... He has enough credentials to just walk away from the current situation," said Rajiv Biswas, chief Asia economist for global consultancy IHS.
"The government needs to give him enough leeway to continue."

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today india central bank seen holding rates steady Arab Today, arab today india central bank seen holding rates steady

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today india central bank seen holding rates steady Arab Today, arab today india central bank seen holding rates steady

 



Arab Today, arab today
Arab Today, arab today Arab tradition glitters in Colombia

GMT 12:59 2017 Thursday ,19 October

Arab tradition glitters in Colombia
Arab Today, arab today Barcelona through George Orwell’s eyes

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Tillerson heads to Gulf, downbeat

GMT 09:23 2017 Friday ,20 October

Tillerson heads to Gulf, downbeat
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Actress Shery Adel happy for Egypt’s qualification

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 18:29 2017 Sunday ,03 September

Designer produced new set of ornaments

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:43 2017 Wednesday ,18 October

Fake dentists ply brisk trade

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 19:29 2017 Tuesday ,29 August

Yomna: decoration leaved positive effects
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday