Train passenger fares may soon be linked to inflation rate, sources say, adding that the new model may be based on the Wholesale Price Index.
High inflation print is the price that the Reserve Bank of India (RBI) will have to pay to nurse a fragile growth back, say economists. Wholesale Price Index-based inflation rose to a record high of 12.94 per cent in May, aided by low base effect, but also because of higher fuel and commodity prices. Retail inflation, too, surprised by rising to 6.30 per cent, while the core inflation, which is the non-food and non-fuel component, rose to an 83-month high of 6.55 per cent. These numbers are much above RBI's upper limit of 6 per cent inflation target, but there is very little that the RBI can do at this moment.
ONGC was the top gainer which surged over 4% followed by Axis, SBI, CIL
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During April-February, the index of industrial production, a measure of factory activity, declined 0.1 per cent compared with a 0.9 per cent growth in the corresponding period of 2012-13.
Overall slowdown in the economy and growing volumes of unbranded generic medicines in the domestic market are behind poor sales.
In a recent article, Rajan has ridiculed critics of the exchange rate policy.
Bank Nifty closes at a 30-month high; Rate sensitives lead the rally on RBI rate cut optimism.
Don't be surprised if growth in the second half of the financial year drops below 4%, which is where it was in the year before the pandemic, warns T N Ninan.
RBI Governor has been under pressure from Finance Ministry.
The country saw two straight years of deficient monsoons.
Infrastructure and inflation targeting are expected to be top priorities for the new Reserve Bank of India governor, says A V Rajwade.
The National Council of Applied Economic Research (NCAER) on Thursday lowered the GDP projection for the current fiscal to 4.7-4.9 per cent due to exchange rate depreciation.
The RBI may grant licences for setting up small finance and payment banks by April 2015.
The new government will face four big challenges -- subdued growth, the fiscal and current account deficits and sticky inflation, RBI Governor Raghuram Rajan said.
The Sensex and the Nifty witnessed biggest one day loss in percentage terms since June 24
The broader NSE Nifty struggled before ending well above the 10,500-mark.
Costlier vegetables slowly pushed retail inflation, which had remained well within the Reserve Bank's comfortable level of 4 per cent during most part of 2019, peaked to more than three-year high of 5.54 per cent in November.
The real requirement for the finance minister's explanatory speech is to explain the measures taken in the Budget to influence inflation and growth not just through the announcement of a deficit goal, but more broadly through the impact on money supply, consumer demand, foreign trade and investment, explains Nitin Desai.
The BSE Midcap and Smallcap indices underperformed the largecaps and ended over 1% lower.
Leading indicators suggest economic activity has been disrupted after demonetisation.
China's devaluation creates new risk in global financial markets and could prolong the West's slowdown.
RBI Governor would like to wait till Budget before taking any action on rate front.
RBI data show one-fifth of all the infrastructure loans are stressed and the share of such loans in overall stressed assets is nearly a third.
Metals, auto and banking shares were in the limelight in this session; the FMCG pack, however, ended lower.
The combination of sanctions, and low fuel prices is really hurting the Putin regime.
The rise in food inflation was on account of increase in prices of onions, vegetables, cereals and protein-based items.
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The latest macro-economic numbers confirm the economy trundles along in a low growth trajectory, while inflation climbs.
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The agency has kept its FY15 growth forecast unchanged at 5.6 per cent.
Bidders have to deposit a security fee of Rs 25 crore as well as minimum guarantee fee.
Business houses expect rate cut in next RBI policy.
The economists, who were surveyed, also felt it will take time for banks to make any further reduction in deposit rates
Even US equities are now back to end-2014 levels.
Movement of rupee and crude oil prices will also dictate the trend
Sharp fall in capital goods production and manufacturing activity also dented sentiments.
The 30-share Sensex ended down 66 points at 28,438 and the Nifty ended down 15 points at 8,633.
Finance minister Nirmala Sitharaman on Wednesday exuded confidence that inflation would further decline and the government is on track to meet its budgetary target for deficit and said that there is no fear of stagflation in India. Replying to the debate on first batch of Supplementary Demands for Grants 2022-23 in Lok Sabha, the finance minister said inflation has come down and it is now in the tolerable band of the RBI. Inflation has been declining since April 2022 and it is declining further, she said.
Managing Brexit, inflation and banking reforms, along with the political environment, will be tough.
Analysts expect RBI to restore 100-bp corridor in Tuesday's policy review.
What differentiates Rajan from his predecessors is his proactive steps in anticipating a problem and coming up with out-of-the-box solutions
The industry has stepped up its demand for a rate cut
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