Upload
others
View
7
Download
0
Embed Size (px)
Citation preview
1/29/2014 CPI inflation to rule above RBI's comfort levels, rate cut may not be imminent - The Economic Times
http://economictimes.indiatimes.com/news/economy/policy/cpi-inflation-to-rule-above-rbis-comfort-levels-rate-cut-may-not-be-imminent/articleshow/29515901.cms 1/5
Follow1.8mLike| Log In | Join |
Top News News By Industry News By Company Economy Politics and Nation International Emerging Businesses NRI PSU Press Releases
Other Press Releases Sports
Indicators Policy Finance Foreign Trade Infrastructure Agriculture Go the Distance
Market Watch
11:40 AM | 29 Jan
SENSEX
20,761.92 78.41
NIFTY
6,153.00 26.75
Gold (MCX) (Rs/10g.)
29,401.0 -120.0
USD/INR
62.18 -0.35Login to Track your
Investment
VIEW MARKET
DASHBOARD
You are here: ET Home › New s › Economy › Policy
Policy Search for News, Stock Quotes & NAV's
null
By ET Bureau | 29 Jan, 2014, 04.00AM IST 0 comments | Post a Comment
A ds by Google
Resort NA Plots @6L Onlydishadirect.in/WaterfrontWadaDeals -Waterfront, Premium Resort NA Plots Book Now at6L only for "High ROI".
1028.95
BSE
9.80(0.96%)
Vol: 119428 shares traded
1028.60
NSE
9.95(0.98%)
Vol: 718917 shares traded
ICICI Bank Ltd.
Prices | Financials | Company Info | Reports
CPI inflation to rule above RBI's comfortlevels, rate cut may not be imminent
READ MORE ON » WPI inflation | Wholesale price index | Urjit Patel committee | Repo rate | RBI | Raghuram Rajan |monetary policy
KOLKATA: An interest rate cut does not
appear imminent since monetary policy is
likely to be driven by consumer price inflation
or CPI data, which is expected to stay way
above the Reserve Bank of India's comfort
level. CPI inflation will be 8.9% in the second
quarter of 2014-15 and average 8.5% for the
entire fiscal, according to a survey of experts,
putting paid to hopes of a rate cut.
The banking regulator has said it wants to
bring down inflation to a low and stable level
before allowing monetary policy to contribute
to the revival of consumption and investment
in a sustainable manner.
"You should really watch the trends in inflation
and deposits, which really impact the cost of
funds. You cannot say something very quickly
(on possible rate cut)," ICICI BSE 0.96 %
Bank's managing director and chief
executive Chanda Kochhar said. The RBI
has raised repo rate by 25 basis points to
8%, although CPI inflation eased to a three-
month low of 9.87% in December.
Indiatimes | The Times of India | The Economic Times | More
Home Markets IPO Personal Finance Mutual Funds Tech Jobs Features Blogs Slideshows ET NOW ET SpeedOpinionNew
News
1/29/2014 CPI inflation to rule above RBI's comfort levels, rate cut may not be imminent - The Economic Times
http://economictimes.indiatimes.com/news/economy/policy/cpi-inflation-to-rule-above-rbis-comfort-levels-rate-cut-may-not-be-imminent/articleshow/29515901.cms 2/5
nullET SPECIAL: Save precious time tracking your
investmentsThe regulator has expressed concerns over
high inflation putting pressure on the rupee
and acting as an inequitable tax on the poor.
The RBI expects CPI inflation to come down to 8% over the next 12 months. CARE Ratings
chief economist Madan Sabnavis said interest interest rates would be lowered provided CPI
comes below or falls continuously towards this mark. "There is definitely little scope for
interest rate relaxation now unless CPI inflation comes down," he said.
Growth expectations for 2013-14 have remained unchanged, while inflation based on the
wholesale price index (WPI) is expected to be higher than earlier estimated. Retail inflation
measured by the CPI is likely to moderate this quarter from the current levels due to further
seasonal softening in vegetables and fruit prices.
However, CPI, excluding food and fuel inflation, is expected to remain elevated, putting
pressure on the headline CPI inflation, which may remain above 9% in the rest of 2013-14.
"Elevated interest rates remain a challenge for the industry.
However, the RBI's current read on inflation seems to have left them with not much of a
choice," Federal Bank's managing director and chief executive Shyam Srinivasan said.
The future policy is expected to be based on the path recommended by Urjit Patel
Committee on disinflation that has set an objective of below 8% CPI inflation by January
1/29/2014 CPI inflation to rule above RBI's comfort levels, rate cut may not be imminent - The Economic Times
http://economictimes.indiatimes.com/news/economy/policy/cpi-inflation-to-rule-above-rbis-comfort-levels-rate-cut-may-not-be-imminent/articleshow/29515901.cms 3/5
More from The Economic Times
Anti-AAP Facebook page at Arvind
Kejriwal's alma mater, IIT Kharagpur 24 Jan
2014
Modi's call to bring back black money:
Why it would be better to curtail… 26 Jan
2014
Experts say Urjit Patel report carries RBIs'
hawkish stance 22 Jan 2014
WPI Inflation eases to 5-month low of
6.16%: Experts' reaction 15 Jan 2014
More from the web
Crude Oil Spills on U.S. Railways Hits
Four Decade High Roll Call
Infrastructure the key to global growthHSBC Global Connections
Building a Competitive Advantage with
Mobile Technology TechViews
If You Have Gmail, You Need Thisbijansabet.com
TOP STORIES
HDFC Life™ Term Planwww.hdfclife.com/Term-Insurance - Premium Starts at Just Rs. 2000/yr. No Medicals
upto 75L Cover* Buy Now
Ads by Google
PREVIOUS STORY
Indian economy: View from MintStreet
NEXT STORY
RBI projects modest economicrecovery to set in next fiscal
2015 and below 6% by January 2016.
The RBI said inflation could moderate over the next fiscal. CPI inflation is expected to range
between 7.5% and 8.5% in the fourth quarter of 2014-15, albeit with an upward bias.
Recommended by
READ MORE ON » WPI inflation | Wholesale price index | Urjit Patel committee | Repo rate | RBI | Raghuram Rajan |monetary policy
Follow Economic Times Policy Section, For The Latest News!
Your comment
INFOCUS ON ET TODAY
Be the f irst of your friends to recommend this.Recommend
183Like
There are no comments on this article yet. Be first to post one!
Comments are moderated and w ill be allow ed if they are about the topic and not abusive.
Characters remaining (1500)
1/29/2014 CPI inflation to rule above RBI's comfort levels, rate cut may not be imminent - The Economic Times
http://economictimes.indiatimes.com/news/economy/policy/cpi-inflation-to-rule-above-rbis-comfort-levels-rate-cut-may-not-be-imminent/articleshow/29515901.cms 4/5
Type Company Name Get Quote
Get a Quote
Other Times Group news sites
Times of India | इकनॉ�मक टाइ�स
Living and entertainment
Timescity | iDiva | Bollyw ood
Hot on the Web
Grand i10 Price | Cholesterol
Services
Book print ads | Online shopping | Free SMS | Website
Browse Companies
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z | 1 2 3 4 5 6 7 8 9
Home | New s | Markets | Personal Finance | Mutual Funds | Infotech | Jobs | Opinion | Features | Videos | My Portfolio | Budget 2013
Live Market New s Portfolio Mobile Live TV New sletter Commodities Speed QnA Blogs Alerts
Spy agencies tap datafrom apps like AngryBirds, Google MapsEvery time smartphone users fire up apps like
Angry Birds and Google Maps, US and British
spy agencies extract huge amounts of
personal data.
El Nino may comecalling and hit Indianmonsoon this year
RBI governorRaghuram Rajan onrate cut and otherecononomic issues
Vishwanathan Anandand Carlsen to faceoff in Zurich ChessChallenge
Demis Hassabis,computer scientist,is the big brainbehind Deep Mind
PERSONAL TECHNOLOGY
Panasonic T31: A stylishinstallment-freesmartphone!
Google Glass now bringsprescription frames andnew styles
ET Review: Dell Venue 7 ET Review: Lava Iris Pro 30
EMERGING ENTERPRISE
RangDe invites equityinvestments for socialbenefit
Medical device startupOneBreath raises rupees18 crore funds
How ADM Technologiesbecame Rs 18cr business
Chennai startup Reelboxstreams Kannada moviesonline for NRIs for a fee
1/29/2014 CPI inflation to rule above RBI's comfort levels, rate cut may not be imminent - The Economic Times
http://economictimes.indiatimes.com/news/economy/policy/cpi-inflation-to-rule-above-rbis-comfort-levels-rate-cut-may-not-be-imminent/articleshow/29515901.cms 5/5
ઈકોનોિમક ટાઈ�સ | Mumbai Mirror
Times Now | Indiatimes
नवभारत टाइ�स | महारा�� टाइ�स
�ಜಯ ಕ�ಾ�ಟಕ | Lifehacker
Gizmodo | Eisamay | IGN India
NavGujarat Samay
Zoom | Healthmeup | Luxpresso
Technology | Guylife | Online
Songs
Networking
itimes | Dating & Chat | Email
MensXP.com
Sunny Leone Photos | Yebhi
Coupons
Used Cars in Chandigarh | Bike
Price India
design | CRM | Tenders
Matrimonial | Ringtones | Astrology | Jobs | Property | Buy car | Bikes in
India
Used Cars | Online Deals | Restaurants in Delhi | Movie Show Timings in
Mumbai
Remit to India | Buy Mobiles | Listen Songs
About us / Advertise w ith us / Terms of Use and Grievance Redressal Policy / Privacy Policy / Feedback / Sitemap / Code of Ethics Copyright © 2014 Times Internet Limited. All rights reserved.