Arab Today, arab today inflation at 10 month high rate cut hopes fade
Last Updated : GMT 11:16:14
Arab Today, arab today
Arab Today, arab today

Inflation at 10 month high, rate cut hopes fade

Arab Today, arab today

Arab Today, arab today Inflation at 10 month high, rate cut hopes fade

New Delhi - Arabstoday

India’s inflation accelerated to a 10-month high, hitting 7.81% in September, data showed yesterday, diminishing chances of an interest rate cut to jumpstart a sharply weaker economy. The September figure was a blow to business leaders who have pressed India’s hawkish central bank to cut rates to boost growth which has slowed dramatically. “This is not a good number,” IHS Global Insight economist Jyoti Narasimhan said, adding the Reserve Bank of India has “repeatedly maintained its primary mandate is containing inflation so it will now likely defer any rate cuts.” The Wholesale Price Index, the closest-watched inflation gauge in Asia’s third-largest economy, rose 7.81% year-on-year in September, outpacing market forecasts of a 7.7% rise. Inflation, spurred by a 14% hike in state-controlled diesel prices to lower fuel subsidies that have fed a bloated fiscal deficit, was up from the previous month’s 7.55% and was the highest since last November. Central banks in developing countries from China to Brazil, whose inflation is below India’s, have eased borrowing costs to try to ring-fence their economies from the effects of the eurozone debt crunch. But the RBI, which meets on October 30 to review rates, has kept its focus on fighting inflation which remains stubbornly above its 5% comfort level and has created huge hardship for the nation’s teeming poor. Most analysts predict the bank will keep rates on hold at least until December - and perhaps longer until inflation shows a decisive downward trend. The bank last cut rates in April after raising borrowing costs 13 times. “Headline inflation rose more than expected,” said HSBC’s India chief economist Leif Eskesen. “This ought to make the bank careful about easing until inflation risks have receded sufficiently.” The disappointing data comes after Prime Minister Manmohan Singh’s Congress government, facing elections in 18 months, recently introduced a string of market-opening steps in a bid to boost growth. Powerful government economic mandarin Montek Singh Ahluwalia said yesterday he was hopeful the measures would lead to an economic “turnaround” in the second half of the financial year to March 2013. The Planning Commission deputy chairman estimated growth at around 5.5% in the first half and said “the second half will be better, somewhere around 6%” - but still far below stellar double-digit levels in recent years. “The government is back in action” on reforms while an up-tick in industrial output “is an example of deceleration having been arrested,” he said, and urged global ratings agencies to take India off their “negative watch.” Standard & Poor’s said last week there was “at least a one-in-three likelihood” of a downgrade of India’s sovereign credit rating within the next 24 months from investment grade to junk. “I don’t believe there’s an iota of information that would suggest taking a negative step,” said Ahluwalia. “It is true that when you raise a key price like diesel, in the short run you have an uptick, but the idea that six months later the inflationary situation will be worse as a result of this is not true,” Ahluwalia said in Mumbai. A few economists think WPI inflation will fall, arguing that weak demand will offset fuel price pressures. Finance ministry officials have said recent fiscal reforms have given the RBI room to cut interest rates by at least 25 basis points, and Finance Minister P Chidambaram gave the RBI a further prod on Saturday, when he called for it to take “calibrated risks” to support the economy. “Pressure is mounting on the central bank for a quid-pro-quo move after the government initiated reforms to correct the fiscal imbalances and we expect consensus to be split as we approach the end-October review,” said Radhika Rao, economist at Forecast Pte in Singapore.

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 inflation at 10 month high rate cut hopes fade Arab Today, arab today inflation at 10 month high rate cut hopes fade

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
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 Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models

GMT 16:11 2017 Thursday ,23 February

Bahrain Bourse daily trading report

GMT 16:08 2017 Thursday ,23 February

BHB holds VAT seminar

GMT 13:40 2017 Thursday ,23 February

Muscat Securities Market loses 17 points

GMT 13:18 2017 Thursday ,23 February

Bahrain Bourse daily trading report

GMT 05:51 2017 Thursday ,23 February

Saudi stocks edge up as Brent futures rebound

GMT 20:48 2017 Wednesday ,22 February

Dividend announcements drive Muscat bourse

GMT 16:56 2017 Wednesday ,22 February

Global gold prices drop
View News in Arabic - Business: أسواق مالية
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 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
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 Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

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 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

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 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
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