Unchecked price rise can spoil India”s long-term growth party: RBI
The Reserve Bank of India (RBI) has said that ”unchecked price rise can spoil India”s long-term growth party”. The central bank has pointed out that if the inflation is not controlled it can dent the country”s growth prospects as the same is spreading to various parts of the economy from just food products a few [...]
High growth will boost revenue but fuel inflation: RBI
The Reserve Bank of India (RBI) indicated that the rise in economic growth would contribute to fiscal consolidation by adding to government revenues. However, it is said that the stronger-than-expected revival has added to general policy concerns on inflation. Food prices have already risen substantially; even though the central bank had in October `09 projected [...]
Financial stability complex challenge for RBI: Subbarao
Reserve Bank Governor, D Subbarao stated that India”s rapid incorporation with the rest of the world could create complex challenges to its financial stability and the country would more and more be exposed to the forces of globalization. In addition, he said that they cannot be globalizing and at the same time anticipate to remain [...]
RBI sees need to revive private expenditure to boost growth
The main challenge to revert to a high growth path was to renew private consumption and investment expenditure stated India’s monetary authority Reserve Bank of India (RBI). Additionally, the government is running a fiscal deficit of 6.8% in the current fiscal, highest in the post liberalization era, which according to the finance minister was a [...]
RBI leaves key rates unchanged
The RBI on Tuesday kept the key policy rates unchanged but increased the inflation forecast to 5 per cent. RBI kept the repo rate, at which the central bank lends cash to banks, at 4.75 per cent and the reverse repo rate, at which it absorbs surplus cash from the banking system, stays at 3.25 [...]