openPR Logo
Press release

India Faces Continuing Inflation, Raises Interest Rates

09-20-2011 08:38 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Corolla Financial

India's central bank has raised interest rates for the 12th time in 18 months to try to contain inflation. The Reserve Bank of India raised the policy lending rate, called the repo rate, by 25 basis points to 8.25%. India has been struggling to contain inflation which is at a 13-month high of 9.78%. The move was widely expected by a majority of economists, though some predicted a pause after weak industrial production figures earlier this week. Over the past two years, India, which has the highest inflation rate of any major emerging market, has struggled to rein in prices with tighter monetary policy. Fears are growing about the lack of a fiscal response as inflation - triggered by high food prices - has spread across India over the past year. India's inflation rate accelerated to a 13-month high of 9.78% in August, highlighting the dilemma facing policymakers as they wrestle with the challenges of rising prices and a slowing economy. The central bank's latest tightening comes as concerns mount about the health of the global economy and the possibility of debt defaults in some eurozone countries. The Reserve Bank of India's critics say it has been too slow to act against rising prices. Some leading industrialists have complained bitterly about the rising cost of capital and warn that India now competes with global rivals on the cost of labour but little else. There are fears that the Reserve Bank of India will continue to raise rates as inflation has remained high.

The government is projecting growth of 8.5% for the fiscal year that ends next March – this is threatened by the rising prices, which limit domestic consumers' spending power. Analysts at Corolla Financial say the latest hike in petrol prices will add to the "inflationary pressure". Nearly a dozen hikes in petrol prices over the past two years have raised the price of the fuel by more than 50%. In May, oil firms raised petrol prices by 5 rupees ($0.10; £0.06) a litre - the steepest ever single increase. Last year, the government allowed state-run firms to fix petrol prices but it continues to control the prices of diesel, kerosene and cooking gas to protect the poor and try to keep a check on inflation. India's domestic demand driven economy grew 7.7 per cent in the April-June period, its weakest pace in six quarters, but outperformed even gloomier predictions. Many private economists have cut India's growth outlook citing policy paralysis, high inflation and rising interest rates.

About Corolla Financial:
Corolla Financial specializes in providing a range of financial advisory and brokerage services to personal and corporate clients. Regardless of what stage of life or business you are at, Corolla delivers comprehensive advice and services custom designed to address your needs.

Andrew Watson
Gran Via de les Corts
Barcelona, Spain

Phone: +34931807950

This release was published on openPR.

Permanent link to this press release:

Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release India Faces Continuing Inflation, Raises Interest Rates here

News-ID: 192399 • Views: 1071

More Releases from Corolla Financial

Japan Boosts Stimulus
The Bank of Japan has eased monetary policy by expanding asset purchases in a bid to boost growth, and left interest rates unchanged at between zero and 0.1%. The Bank of Japan has eased monetary policy by expanding asset purchases as the yen's strength and slow progress by European leaders in solving the region's debt crisis cloud the outlook for the country's fragile economy. The Bank of Japan (BOJ) has expanded

More Releases for India

Medical Tour India | Affordable Treatment In India
We at MedCredible look after the well being of the patients seeking treatment in India. Our support staff support is well trained in handling various situations arising due to cross border differences. All the patients can avail of high-quality treatment at an extremely affordable cost in a compassionate environment combined with ethical practices. With options of over 100 + Hospitals and Institutions, we at Medcredible ensure that we connect the
01-17-2011 | Health & Medicine
IVF India, Test Tube baby India
The aim of setting up KJIVF is to help infertile couples in achieving conception through modern diagnostic and treatment methods. KJIVF Centre has given the best results by blessing infertile couples of advanced age with children, these couples could never dream of becoming parents. Thousands of babies are conceived through in-vitro fertilization (IVF) each year; In-Vitro Fertilization (IVF) means fertilization outside the body. A baby developed from an egg that
Beach Holiday India- Best Beaches in India
The natural beauty, exotic locations and rich heritage has helped India to stand as the most visited and most popular tourist spot in the world. The status of “Incredible India”, is defined by an incredible range of nature’s blessings on the Indian subcontinent and this incredibility is doubled by one of the most fabulous tourism option available in the country that are the brilliant and majestic beaches in India.
ISO 27001 India, 27001 training India ISO
Coral eSecure is information Risk Management advisory with specific focus on Information Security (ISO 27001, ISO 17799, PCI, COBIT, HIPAA, GLBA, and DPA), Business Continuity (BS25999) and ITIL/ IT Service Management (ISO 20000). Coral is the FIRST Indian consulting organization which provides an Integrated Management System Consulting, Consisting of ISO 27001, ISO 20000 and BS25999 – ALL THREE IN ONE! Coral provides Consulting, Assurance audit and Training to address these
Interior Designers India, Designers and Architects India
Today, we have recognized ourselves as a booming beauty interior designing firm, offering services that include interior designing. We are a winning firm, which is based on the strong foundation of innovative and original ideas for interior, architectural and landscaping designing services. Synergy Corporate Interior Design Association has more corporate members. Who provide Products and services. We support Interior Designers India, Designers and Architects India. We are committed to the
Domain Registration India, Web Hosting India, Payment Gateway India is a Quality Web Hosting Company India, provide all web related support and Web hosting services like linux web hosting, windows web hosting, web hosting packages, domain registration in india, Corporate email solution, business email hosting, payment gateway integration, SSL with supports like free php, cgi, asp, free msaccess, free cdonts, free webmail, web based control panel, unlimited ftp access, unlimited data transfer. During the domain registration process, you will