India’s United Progressive Alliance must act decisively for effective change
Saturday, July 16, 2011
| Posted by: Grant Thornton
Categories:
India,
India Watch Issue 13
| Tags: India,
economy,
China,
growth,
India Watch,
UK,
South Asia Group,
Anuj Chande,
Capital Markets,
inflation,
RBI,
Reserve Bank of India
This halfway point in the calendar year provides us with an ideal opportunity to review India’s economic and political status over the past few months and also to look forward to what the remainder of the year might have in store.
There seems no better item to start with then what has now become a fairly routine announcement from the Reserve Bank of India (RBI). Last month the RBI raised interest rates for the 10th time in 18 months. The repurchase rate was raised by 25 basis points to 7.5% as the RBI continued to try and curb inflationary pressure. As with the first quarter of the year, wholesale-price inflation (around 9.1% year-on-year to the end of May) continues to be fuelled by high oil prices and strong domestic demand.
