Arab Today, arab today india’s central bank tipped to hold rates
Last Updated : GMT 17:39:45
Arab Today, arab today
Arab Today, arab today

India’s central bank tipped to hold rates

Arab Today, arab today

Arab Today, arab today India’s central bank tipped to hold rates

Mumbai - Arabstoday

India’s central bank is likely to keep interest rates on hold this week, analysts and economists said, as policymakers prepare to meet amid fresh signs of a slowdown in the fast-growing economy. The Reserve Bank of India (RBI) is due to review monetary policy on Friday, having said in October that the likelihood of another hike in rates was ‘relatively low’.The RBI’s repo rate, at which it lends to commercial banks, is at a near three-year high of 8.50 percent. The reverse repo rate that it pays banks for deposits is at 7.50 percent — its highest in more than a decade.Governor Duvvuri Subbarao maintains that the succession of 13 rises since March last year was designed to tame spiralling inflation running at nearly 10 percent, even if it means that short-term growth takes a hit.But predictions of a softening of the bank’s hawkish stance have grown amid fears that meeting even the government’s revised growth target of 7.5 percent this year may be optimistic in the current economic climate.Business leaders have been at the vanguard of calls for a cut in interest rates or a pause in hikes to boost flagging investor confidence and re-energise growth. Both the Federation of Indian Chambers of Commerce and Industry (FICC) and the Confederation of Indian Industry (CII) renewed their call for prompt action after the latest industrial output figures were announced on Monday.Output shrank 5.1 percent year-on-year in October, with the slump felt in key sectors such as manufacturing production, mining and capital goods.‘The industrial slowdown is taking very serious dimensions and there is an urgent need to improve sentiments if the downward trend has to be checked,’ said CII director-general Chandrajit Banerjee.The figures, which took analysts by surprise, dragged down the stock markets, with the Sensex index of 30 leading companies losing more than two percent, adding to a general downward trend this year.On top of that, the rupee plunged to record lows against the dollar on Tuesday, as investors sought a safe haven in the US currency largely due to uncertainty caused by the European debt crisis.Analysts saw the last rate rise in October as a possible sign that the cycle had reached its peak and predicted that the RBI may start to lower rates from next year once inflation has moderated.‘They will hold the rate steady on Friday,’ said D.K. Joshi, chief economist at analysts Crisil. ‘They will give a dovish guidance on the economy... I think the tone will change,’ he told AFP.The chairman of the Indian Prime Minister’s Economic Advisory Council, C. Rangarajan, said that a pause in rate increases ‘is something that’s likely to happen’.‘But whether or not going forward further action is required depends on what happens on inflation,’ he told the Business Standard newspaper in an interview published on Tuesday. ‘As inflation subsides, there might be a pause. We will have to see what inflation numbers we get,’ he was quoted as saying.Inflation figures for November are due out on Wednesday.Annual inflation, measured by the closely-watched Wholesale Price Index, rose to 9.73 percent in October from its September level of 9.72 percent.The RBI would also have to factor in the eurozone debt crisis, which is hitting growth around the world and has prompted other central banks to ease their monetary policy stance, analysts said. 

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’s central bank tipped to hold rates Arab Today, arab today india’s central bank tipped to hold rates

 



Arab Today, arab today
Arab Today, arab today Rabia Fatima reveals role of "Facebook" in her career

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
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