Monetary Policy Review

As expected, the Reserve Bank of India (RBI) on Tuesday (February 2) kept the repo rate unchanged at 6.75% with the Union Budget on the anvil and while awaiting more data on the inflation trajectory. Since its last policy-rate cut, some room for monetary easing has opened up as global growth
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RBI Monetary Policy Preview

After a cumulative 125 basis points cut in the repo rate by RBI during past 12 months, market participants are now bracing for a pause. Slowing economic conditions definitely demands further fall in the interest rates but growing concerns over fiscal prudence and rise in food inflation is pouring
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Indian Economy-Fiscal Deficit

The fiscal deficit (FD) for 9MFY16 has reached `4.9trn, which is 88% of the full year target (`5.6trn). Tax collections have remained buoyant led by indirect taxes. Expenditures have been mainly on roads and railways, plan revenue spending trending down. While
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Indian Economy: WPI Inflation

For the 14th month running, in Dec'15 the WPI continued in deflation (-0.7%). The pullback in WPI inflation stemmed primarily from food. The high inflation in pulses and onions, and hardening inflation in other foods, are driving food
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Growth Inflation Mix Worsens: Inflation Up, Industry Down

Consumer price inflation (CPI) edged up for the fifth straight month, to 5.6% in December, from 5.4% in November. But the rise was much slower than in the previous months as the low base effect wore out. Pulses inflation stabilized at a higher level after rising sharply for nearly a
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