Expert Zone

Decoding Subbarao’s signals

By Hartmut Issel
May 7, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

When Reserve Bank of India (RBI) governor Duvvuri Subbarao announced last week that the central bank was cutting its policy interest rate for the third time this year, he also made a statement that may well have been directed as much to watchers of the Indian economy as to its managers. His message to the government, originally coded in technocratic diplomacy: It’s time for you to do your share in reviving growth.

Why is RBI chief Subbarao so cynical?

May 6, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

In its policy review on May 3, the Reserve Bank of India (RBI) did bring down the repo rate by 25 basis points but it also presented a gloomy outlook on growth and inflation which left the stock markets cold. The Sensex, which had surged in anticipation, fell 160 points. What makes the RBI so negative when even rating agencies are inclined to accept the emergence of green shoots?

Why India slowed

By Raghuram Rajan
May 1, 2013

This piece comes from Project Syndicate. The opinions expressed are the author’s own

Need to bring repo rate in line with inflation

April 29, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

For nearly three years now, the Reserve Bank of India (RBI) monetary policy has had a single target. The presumption is that only when inflation is below the tolerance limit can the interest rate be made normal.

Markets Weekahead: Not the right time to buy

By Ambareesh Baliga
April 28, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The markets continued their winning streak in the past week, with the Nifty gaining another 1.52 percent to close at 5871 on Friday.

Bear market a golden opportunity to shore up coffers

By Hartmut Issel
April 23, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The recent run of the gold bears in financial markets has been positive for India’s current account balance. If this continues along with the persistent softness of oil prices, as many expect at least for the short term, it just might give the government the opportunity it needs to implement certain measures that have so far run against popular sentiment.

Gold not a good investment for now

April 22, 2013


(Any opinions expressed here are those of the author and not of Thomson Reuters)

India’s current account deficit: solution lies in exports

By R Rajagopal
April 18, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The U.S. dollar is the major currency for international trade. Most countries use it to pay for their imports and also peg the dollar for exporting products and services.

Pitfalls of the food security bill

April 16, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The food security bill will be introduced in the current budget session of parliament, more because of its populist appeal than any economic urgency. Even when the bill was discussed by the Cabinet, Finance Minister P. Chidambaram and Agriculture Minister Sharad Pawar reportedly had reservations. They had valid reasons.

Why FIIs are dumping India

By Kunal Kumar Kundu
April 15, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The Indian stock market is in a tizzy as foreign institutional investors (FIIs) seem to have pressed the sale button. Securities and Exchange Board of India (SEBI) data shows that while there was a considerable slowdown in FII inflow in March, we are seeing an outflow in April.