EXPECTATION FROM RBI POLICY REVIEW- Abhishek Goenka (Founder & CEO, India Forex Advisors)
"The RBI will be having its monetary policy review on 29th January, 2013. There are increasing expectations in the market that the central bank will cut the rates by 25bps. Looking at the economic indicators, India’s CPI remains elevated at...
cityairnews
Jan 28, 2013 12:30
0
"The RBI will be having its monetary policy review on 29th January, 2013. There are increasing expectations in the market that the central bank will cut the rates by 25bps.
Looking at the economic indicators, India’s CPI remains elevated at 10.56% as of December, 2012. India's retail inflation is the highest among the BRICS group of emerging economies - Brazil, Russia, China, and South Africa. The WPI is still out of RBI’s comfort zone but its showing some encouraging signs of easing. More importantly, the core inflation, on which monetary policy has an impact, has been falling. In December, it reached a 33-month low of 4.24%.
We expect RBI to cut the key policy rate by 25 bps tomorrow at its policy meet. For the calendar year 2013, we expect a total 75 bps cut in the key rates by the central bank."
(Source: Corporate Communications, India Forex Advisors Pvt Ltd.)
