RBI signals dip in growth; food prices may fuel inflation(The Hindu Businessline 29th Jan 2008)The Reserve Bank of India seems to be signalling a slight slowdown in the overall economic growth, while also warning of potential inflationary pressures in the period ahead, due to high international food prices.
Credit offtake has shown a slight slowdown in the third quarter of the fiscal, while fund mobilisation through equity issuances has shown a big jump, said RBI’s Third Quarter Review of the Macroeconomic and Monetary Developments.
Since pass-through of higher international oil prices to domestic prices remains incomplete, inflation has remained suppressed, noted the Review. Elevated international food prices also pose potential inflationary pressures in the period ahead.
Credit growth has seen a slight moderation in the April-November 2007 quarter. More
RBI may cut 25 bps in symbolic move(The Hindu Businessline 29th Jan 2008)The life of the central banker has never been more difficult and challenging.
In the good old days, it was enough if he focused on the domestic economy, its growth prospects and inflation, while cocking an eye on the current account and exchange rate. Last week, the US Federal Reserve, in a rare move, cut its benchmark Fed Funds rate from 4.25 per cent to 3.5 per cent in one go. And this was even before Wall Street opened. The collapse of Asian and European markets before US trading began set off alarm – if not panic – bells in the Fed, prompting its pre-emptive action.
Actually, it was only de jure recognition of a de facto situation. For, in recent years and more particularly in recent times, after the sub-prime eruption, markets have gotten ahead of the Fed. Two year Treasuries were down to 2.5 per cent yield levels well before the cut. The market appears to be practically leading the Fed by the nose. More
Credit offtake has shown a slight slowdown in the third quarter of the fiscal, while fund mobilisation through equity issuances has shown a big jump, said RBI’s Third Quarter Review of the Macroeconomic and Monetary Developments.
Since pass-through of higher international oil prices to domestic prices remains incomplete, inflation has remained suppressed, noted the Review. Elevated international food prices also pose potential inflationary pressures in the period ahead.
Credit growth has seen a slight moderation in the April-November 2007 quarter. More
RBI may cut 25 bps in symbolic move(The Hindu Businessline 29th Jan 2008)The life of the central banker has never been more difficult and challenging.
In the good old days, it was enough if he focused on the domestic economy, its growth prospects and inflation, while cocking an eye on the current account and exchange rate. Last week, the US Federal Reserve, in a rare move, cut its benchmark Fed Funds rate from 4.25 per cent to 3.5 per cent in one go. And this was even before Wall Street opened. The collapse of Asian and European markets before US trading began set off alarm – if not panic – bells in the Fed, prompting its pre-emptive action.
Actually, it was only de jure recognition of a de facto situation. For, in recent years and more particularly in recent times, after the sub-prime eruption, markets have gotten ahead of the Fed. Two year Treasuries were down to 2.5 per cent yield levels well before the cut. The market appears to be practically leading the Fed by the nose. More
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