india rate cut unlikely as weak rupee weighs
Last Updated : GMT 11:03:35
Arab Today, arab today
Arab Today, arab today

India rate cut unlikely as weak rupee weighs

Arab Today, arab today

Arab Today, arab today India rate cut unlikely as weak rupee weighs

Mumbai - AFP

India\'s central bank was expected to keep interest rates on hold Monday with concerns over the rupee trading near record lows likely to outweigh the fall in inflation, most analysts said. The central bank has cut borrowing rates three times since the start of 2013 to try to kickstart an economy which has been growing at five percent, a decade low. But with the rupee just above lifetime lows, a ballooning current account deficit and the narrowly based retail inflation index at near double digits, analysts said a rate cut at Monday\'s central bank meeting was unlikely. \"We expect no action from the Reserve Bank of India this time. There are concerns relating to the rupee,\" CLSA economist Rajeev Malik told AFP. The central bank was due to release its monetary policy statement at 0530 GMT. Emerging market currencies across the world have been hit by speculation the US Federal Reserve will cut back on economic stimulus that has fuelled investment flows into developing nations. Malik said the central bank was more likely to cut rates at its July meeting \"by which time the Indian currency should be more stable and the trends for the ongoing monsoon would be clearer\". The Wholesale Price Index, containing the biggest basket of goods and India\'s most closely watched inflation gauge, slowed to 4.7 percent in May on an annual basis, from its 4.89 percent level in April, figures showed on Friday. The wholesale price inflation reading was the lowest since late 2009. But monetary authorities have made it \"crystal clear that while lower wholesale price inflation is a necessary condition for further rate reductions, it is not sufficient\", said Credit Suisse economist Robert Prior-Wandesforde. India\'s central bank\'s key benchmark lending rate -- known as the repo -- now stands at 7.25 percent. Business leaders want the central bank to slash interest rates to spur the economy. But more rate cuts could lead to an even weaker rupee, pushing up the cost of imports and widening India\'s current account deficit, which hit a record 6.7 percent of gross domestic product in the December quarter. \"Global factors and balance of payments are major concerns for the central bank at this stage,\" CLSA\'s Malik said. The Congress party government, led by Prime Minister Manmohan Singh, has been battered by a spate of corruption scandals and is keen to revive economic growth before facing voters in general elections due in 2014. The currency\'s slide to a record low of 58.98 rupees to the dollar last week has sparked fears it could prompt a resurgence in inflation as imports become more costly. The Indian unit, which just three months ago was trading in the mid-40 rupee range, closed at 57.51 to the dollar on Friday. Barclays Capital said it was sticking by its forecast the bank would cut rates due to easing inflation, but conceded there was \"increased risk of a pause\" due to the rupee\'s weakness.

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*

india rate cut unlikely as weak rupee weighs india rate cut unlikely as weak rupee weighs

 



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*

india rate cut unlikely as weak rupee weighs india rate cut unlikely as weak rupee weighs

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today PNG police start removing refugees

GMT 03:00 2017 Friday ,24 November

PNG police start removing refugees
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria congress to go ahead

GMT 02:24 2017 Friday ,24 November

Syria congress to go ahead
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
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 Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 09:12 2017 Thursday ,23 November

4 in 10 cancers due to modifiable risk

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
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