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Mar 12, 2015

Retail inflation edges up for third month

NEW DELHI (Reuters) – Consumer inflation edged up in February for the third straight month, mainly driven by food prices, underscoring the risk of a rebound in inflationary pressures from rising commodity prices.

The data comes ahead of Reserve Bank of India’s monetary policy meeting on April 7 and a week after the central bank cut interest rates by 25 basis points for the second time this year, acknowledging a deficit cutting roadmap set by the government in the 2015/16 budget.

Mar 12, 2015

India’s retail inflation edges up for third month

NEW DELHI (Reuters) – India’s consumer inflation edged up in February for the third straight month, mainly driven by food prices, underscoring the risk of a rebound in inflationary pressures from rising commodity prices.

The data comes ahead of Reserve Bank of India’s monetary policy meeting on April 7 and a week after the central bank cut interest rates by 25 basis points for the second time this year, acknowledging a deficit cutting roadmap set by the government in the 2015/16 budget.

Mar 12, 2015

February consumer inflation likely edged up for third month

NEW DELHI (Reuters) – Consumer inflation probably edged up in February for the third straight month, underscoring the risk of a rebound in inflationary pressures if fuel and food prices pick up.

A plunge in global oil prices and weak consumption have driven down inflation in Asia’s third-largest economy to around 5 percent from double digits in 2013, giving room to the central bank to cut interest rates twice so far this year to spur growth.

Mar 11, 2015

India’s Feb consumer inflation likely edged up for third month

NEW DELHI (Reuters) – India’s consumer inflation probably edged up in February for the third straight month, underscoring the risk of a rebound in inflationary pressures if fuel and food prices pick up.

A plunge in global oil prices and weak consumption have driven down inflation in Asia’s third-largest economy to around 5 percent from double digits in 2013, giving room to the central bank to cut interest rates twice so far this year to spur growth.

Mar 6, 2015

Government faces potential clashes with RBI over who decides rates

MUMBAI/NEW DELHI (Reuters) – Having agreed this week to formally adopt inflation targeting as a guiding star for monetary policy, India’s government and central bank remain at odds over how crucial decisions are made.

Both sides support the setting up of a Monetary Policy Committee, as first officially proposed in 2014 when a different government was in power, and Reserve Bank of India (RBI) Governor Raghuram Rajan was just four months into the job.

Mar 5, 2015

India’s government faces potential clashes with RBI over who decides rates

MUMBAI/NEW DELHI (Reuters) – Having agreed this week to formally adopt inflation targeting as a guiding star for monetary policy, India’s government and central bank remain at odds over how crucial decisions are made.

Both sides support the setting up of a Monetary Policy Committee, as first officially proposed in 2014 when a different government was in power, and Reserve Bank of India Governor Raghuram Rajan was just four months into the job.

Mar 2, 2015

India overhauls monetary policy using inflation targets

MUMBAI/NEW DELHI (Reuters) – India’s government and central bank have agreed to commit to inflation targeting, in the biggest change to monetary policy since India’s economy was opened up more than two decades ago, putting priority on subduing almost chronically volatile prices.

In a document dated Feb. 20 but published on the ministry website on Monday, the two sides set a consumer inflation target of 4 percent, with a band of plus or minus 2 percentage points, for the financial year ending in March 2017.

Feb 28, 2015

India to inject $1.3 bln to shore up state banks

MUMBAI/NEW DELHI, Feb 28 (Reuters) – India will inject 79.4
billion rupees ($1.3 billion) into state-owned banks in the next
fiscal year to bolster their capital reserves, a
smaller-than-expected sum which means the sector’s heavyweights
may have to turn to the market or curb lending.

Successive governments have poured billions into India’s
bad-debt burdened state banks, even while warning the support
was unsustainable. The Reserve Bank of India estimates lenders
need more than $40 billion to meet global Basel III norms by
2019.

Feb 28, 2015

Jaitley goes for growth, slower fiscal deficit cuts

NEW DELHI (Reuters) – Finance Minister Arun Jaitley on Saturday announced a budget aimed at high growth, saying the pace of cutting the fiscal deficit would slow as he seeks to boost investment and ensure that ordinary people benefit.

Jaitley, delivering his first full-year budget since Prime Minister Narendra Modi’s landslide election victory last May, said growth would accelerate to between 8 and 8.5 percent in the fiscal year starting in April.

Feb 28, 2015

India’s Jaitley goes for growth, slower fiscal deficit cuts

NEW DELHI, Feb 28 (Reuters) – India’s Finance Minister Arun
Jaitley announced a budget for growth on Saturday, saying the
economy was ready to “fly”, that the government would boost
investment and ordinary people should benefit.

Jaitley, delivering his first full-year budget since Prime
Minister Narendra Modi’s landslide election victory last May,
said economic growth would accelerate to between 8 and 8.5
percent in the fiscal year starting in April.