Arab Today, arab today no rate cut for india despite growth concerns
Last Updated : GMT 08:17:24
Arab Today, arab today
Arab Today, arab today

No rate cut for India despite growth concerns

Arab Today, arab today

Arab Today, arab today No rate cut for India despite growth concerns

New Delhi - AFP

India\'s central bank will keep interest rates at close to four-year highs when it meets on Tuesday despite mounting anxiety over cooling growth in Asia\'s third-largest economy, analysts say. While other developing nations from Brazil to Indonesia have cut rates to shield their economies from the global downturn, India\'s worries over inflation are likely to leave the cost of borrowing unchanged. The Reserve Bank of India has \"emphasised that upside risks to inflation remain\" and it would be \"premature\" to begin cutting interest rates at the policy-setting meeting, said HSBC economist Lief Eskesen. The bank has hiked rates 13 times since March 2010 -- the most aggressive pace of monetary tightening among its global peers -- before going into pause mode late last year amid concerns over faltering growth. Inflation has dropped from near-double digits to 7.47 percent, but economists say the downward trend is not entrenched enough to prompt a rate rollback. The bank is, however, expected to strike a more dovish tone with \"growth concerns now predominating\", says Moody\'s Analytics economist Glenn Levine, who echoed other analysts in predicting a possible rate cut in March. Finance Minister Pranab Mukherjee in the past week insisted that India\'s \"economic fundamentals are strong\" but warned the economy faced a \"difficult\" period. The government is now projecting growth of around 7.0 percent for the financial year to March 2012, down from the 9.0 percent forecast in the budget. The economy grew by 8.5 percent last year. Some economists believe the final growth figure will be slightly lower -- in the mid to upper six-percent range. India\'s economy has staggered under the brunt of the 13 rate rises that have pushed the central bank\'s benchmark interest rate to 8.5 percent -- its highest level since July 2008. The increase in borrowing costs has dampened demand at a time when growth is already being impacted by the struggling US economy and Europe\'s debt crisis. Although India\'s projected growth remains enviable by Western standards, it is too slow to fulfil government pledges of significant poverty reduction and to create enough jobs for a soaring young workforce in the country of 1.2 billion. The slowdown is also playing havoc with Mukherjee\'s fiscal deficit reduction targets. Economists say public finances are deteriorating with a rising subsidy bill, lower-than-expected tax revenues and privatisation earnings, as well as mounting public borrowing. The government has raised just three percent of its 400-billion-rupee ($7.9 billion) target from the sale of holdings in state-owned firms this financial year -- partly due to a bearish stock market. The government\'s top financial adviser C. Rangarajan says it will now be a \"Herculean task\" to cut the budget deficit to the targeted 4.6 percent of Gross Domestic Product. The deficit, which stood at 6.7 percent of GDP in the first half of 2011-12, has emerged as a key concern of economists who say it could be as high as seven percent for the full year -- spelling higher borrowing and bigger interest payments. The deficit was 4.7 percent a year ago. Adding to the gloom is perceived paralysis in the Congress-led government, which has postponed major economic reforms as it fights numerous corruption scandals that have damaged the reputation of Prime Minister Manmohan Singh.  

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 no rate cut for india despite growth concerns Arab Today, arab today no rate cut for india despite growth concerns

 



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 no rate cut for india despite growth concerns Arab Today, arab today no rate cut for india despite growth concerns

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today unveils Joon - the 'millenials' airline

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline
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 Iran tests new medium-range missile

GMT 21:24 2017 Saturday ,23 September

Iran tests new medium-range missile
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal
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 Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 08:39 2017 Friday ,22 September

New Hurdles as Republicans Rush

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals 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