Costlier onion and other vegetables pushed up inflation for the third month in a row to 6.1 per cent in August, making it difficult for the RBI to cut rate in the monetary policy review due later this week.
The panel finds 'discrepancy' in the Annual Survey of Industries data.
If credit is not going to flow in response to a policy rate cut, while inflationary pressures, as well as expectations, may be stoked, a rate cut may not be appropriate at this point
It would be beneficial for the economy to hold on to high interest rates till inflation numbers are under control.
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RBI on Wednesday surprised the markets by leaving key policy rates unchanged, notwithstanding persistent high inflationary pressure.
Bank Nifty closes at a 30-month high; Rate sensitives lead the rally on RBI rate cut optimism.
While Raghuram Rajan has said in the past that other factors, including domestic fundamentals, outweigh the US Fed policy meet, this time it would be different
CPI-based inflation on a (year-on-year) basis has come down from 8.59 per cent in April 2014 to 7.80 per cent in August 2014.
Recommends delisting of chana futures, open to lowering sugar import duty
Overseas education consultant NNS Chandra offers advice.
Prime Minister's key economic advisor C Rangarajan on Friday lowered the growth forecast for the current fiscal to 5.3 per cent from 6.4 per cent projected earlier and listed out host of measures including further liberalisation of foreign direct investment norms to improve economic condition.
GDP growth in November is the second-highest since January 2012 when it had expanded 5.7%.
From inflation, central bank shifts focus to rupee stability and capital flows.
According to the research arm of the country's largest lender State Bank of India, with stability in the currency, the RBI Governor is likely to lower the marginal standing facility rate, at which the RBI lends to the banks, once the lenders exhaust their overnight repo borrowing limits.
RBI Governor Raghuram Rajan has noted the contradiction.
Externally, the global economy is stabilising, with better growth is expected this year.
PMO being sent daily updates on food cost situation in four major metropolitan cities to ensure no unusual flare-up.
Investors booked profit ahead of the outcome of the two-day US Fed policy meet which begins today.
The previous bout of Fed withdrawal fears had threatened to spark a crisis of confidence in India -- sending the rupee to a record low of 68.85 in late August and leading to steep falls in bonds and stocks.
The Finance Ministry on Thursday said the growth rate in the current financial year will accelerate to 5.8 per cent, better than previous estimates, saying the green shoots of economic recovery are now visible.
India Inc on Wednesday said the Reserve Bank's move to cut interest rate by 0.50 per cent is "pro-growth" and exhorted banks to transmit the lower interest rate to borrowers to revive demand and kick-start the investment cycle.
The broader markets ended in line with the benchmark indices- BSE Midcap and Smallcap indices ended higher by 1.3% and 0.9% each.
Technical rallies and short covering may arise only if the markets break this 500 point band
CPI inflation has declined by almost a percentage point from July, from close to eight per cent to just above seven per cent.
Analysts expect RBI to restore 100-bp corridor in Tuesday's policy review.
It would be a miracle indeed if we grow at 7/8 per cent a year over the current and next few years, says A V Rajwade
Janmejaya Sinha lays down Urjit Patel's agenda - cleaning up bank balance sheets, evaluating robustness of CPI and pushing for digitisation in financial services.
Metals, auto and banking shares were in the limelight in this session; the FMCG pack, however, ended lower.
The RBI Governor brought down retail inflation to 3.8% in July.
Reserve Bank Governor Raghuram Rajan is widely expected to hold the key rates citing high inflation at the fourth bi-monthly monetary policy announcement on Tuesday, even though the pro-growth lobby has been wishing for a rate cut.
This is the BJP's first full-year Budget.
The 30-share Sensex jumped 729 points to end at 28,076 and the 50-share Nifty soared 217 points to end at 8,494.
Market breadth was weak with 1,260 advances and 1,597 losers on the BSE.
The Sensex was up 70 points and the Nifty was up 20 points led by SBI on robust Q2 earnings.
Fresh investments are constrained by tepid demand.
Though inflation, on the basis of the wholesale price index, is nowhere near the 1990-91 level of 10.26 per cent and India is in a much better position to check it, the greater integration of our economy with the globe has exposed it to a much higher risk of imported inflation.
Movement of rupee and crude oil prices will also dictate the trend
The new IIP numbers should spread cheer among those who were part of the Manmohan Singh-led United Progressive Alliance, earlier accused of having presided over a steady deterioration in industrial performance, particularly in the last two years of its tenure, says A K Bhattacharya.
We are entering a period of turbulence, but you can profit off that volatility.
The long-term growth perspective or potential for India is one of the highest in the Asia Pacific region.
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