The Great Debate (India)
What more does India's central bank have to do? Last week data showed March inflation rising to almost 9 percent on an annual basis. More importantly, core inflation is above 7 percent for the first time in 3 years meaning demand-side pressures are rising fast. And that's despite the Reserve Bank of India raising interest rates eight times since last March.
The inflation data comes just after a quarterly HSBC report based on purchasing managers indexes showed that inflation in India seemed impervious to monetary policy tightening.
The truth, is the inflation-fighting central bank has little backup from the government which remains stubbornly in spending mode. Its foot-dragging on reform and foreign investment contributes towards keeping food price inflation high. This year's fiscal deficit target is 4.8 percent of GDP and even this
is seen as optimistic.
"What India really needs is to have domestic demand slowing down quite rapidly but the government is not prepared to risk that,"says Claire Dissaux, investment strategist at Millenium Global in London.
Mahendra Singh Dhoni struck a dramatic six to bring the World Cup to India on Saturday after Sri Lanka had threatened to ruin their party.
India is only the third side to win batting second, a feat that seemed beyond them when Lasith Malinga dismissed both openers in his first four overs. India also became the first country to win the World Cup as host.
Nothing gets bigger in this part of the globe than a cricket match featuring India and Pakistan. The rivalry would be renewed in Wednesday’s World Cup semi-final in Mohali in Punjab.
Prime Minister Manmohan Singh and his Pakistani counterpart Yusuf Raza Gilani will watch the match in what is billed as “cricket diplomacy”.
The Pakistan spot-fixing scandal has once again shone the spotlight on illegal betting in the sub-continent and reopened the debate on the legalisation of gambling in India.
Media reports suggest the Indian sports ministry is now examining gambling regulations in other countries, particularly the UK, in a possible move towards legalising sports gambling.
The rupee has achieved parity with major currencies such as the dollar, euro, pound sterling and yen in one respect: it now has its own symbol.
India’s cabinet has approved the adoption of the new symbol after holding a competition that drew more than 3,000 entries, which were evaluated by a deputy governor of the Reserve Bank of India as well as artists and designers.
In a first of its kind legislation by any country, Finland has made broadband internet access a legal right for all its citizens.
As per the new law that came into effect from July 1, Finnish telecom companies will have to provide its citizens broadband lines with a minimum speed of 1Mbps.
The United States, a major trading partner of China, has been cautious in its criticism of Beijing’s tight currency controls.