Indian inflation eased for the third successive week to a six-month low in mid November as demand slowed in the economy, and the central bank was seen cutting rates soon to boost faltering growth. Some analysts said attacks in the financial capital of Mumbai which killed at least a hundred people could force the Reserve Bank of India to bring forward its policy plans.
India's wholesale price index, the most widely watched inflation measure, rose 8.84 percent in the 12 months to November 15, above forecasts for a rise of 8.56 percent but well below double-digit rates seen just last month.
This was India's lowest reading since May 17 and well below early August's peak of 12.91 percent and it comes as policy makers are trying to shield the economy from the ripple effects of a global slowdown. "We are definitely in for a round of easing monetary policy. I am quite sure they will reduce the repo and the reverse repo rates by 50 basis points each," said D.K. Joshi, principal economist with ratings agency Crisil in Mumbai.
Comments
Comments are closed.