Sep 18, 2009

Inflation may cross 6% by March 2010: RBI

The Reserve Bank of India?s Deputy Governor, KC Chakrabarty comments that it is not the right time to plan an exit from the current stimulus. He adds that the RBI is looking at hiking the hold-to-maturity portfolio cap of banks and sees credit picking up in the next few months.

On inflation:
Wholesale Price Index inflation is seen crossing 6% by March, says Chakrabarty.

Seconding his stance, Atsi Sheth, Chief Economist, Reliance Equities, too, sees inflation at 4% by December and 6% by March 2010. "Rise in inflation was driven by higher food prices," she adds.

After remaining in the negative for 13 weeks, inflation for the week-ended September 5 came in at 0.12% versus minus 0.12%. However, the prices of daily basic necessities have increased drastically year on year (YoY) basis.



Post a Comment

Subscribe to Post Comments [Atom]

<< Home