Translate

Wednesday, November 11, 2009

RBI may withdraw stimulus if inflation rises: C Rangarajan

The Reserve Bank of India may withdraw some monetary stimulus if inflation rises towards the end of 2009, C. Rangarajan, chairman of the Prime Minister's economic advisory council, said on Wednesday.

"If inflation pressures develop, monetary authorities may take measures earlier. RBI (Reserve Bank of India) will wait and see how price situation develops in Nov-Dec," Rangarajan said.

The fiscal deficit needed to be reduced by 1 to 1.5 percentage points in the next
fiscal year, he said.

"Next year we might have to start the process of withdrawing some of the measures," he said referring to the fiscal stimulus, adding that excise duties needed to be adjusted while the government's expenditure needed to be cut in 2010/11.

World Bank President Robert Zoellick said the world needed a cooperative approach to exit from easy fiscal and monetary policies and the timing for Asian central banks would depend on markets.

Speaking to reporters at the Singapore Foreign Correspondents Association, Zoellick also said that asset bubbles in east Asian economies could undermine confidence.

He said earlier on Wednesday that governments should not remove stimulus measures next year.

No comments:

Economic Event Calendar

GMT+5:30 Event Vol. Actual Consensus Previous
Thursday, Jun 05
07:00 Exports (MoM) 2 -2.4% 7.2% Revised from 7.6%
n/a Unemployment Rate s.a (MoM) 1 2.9% 2.8% 2.8%
13:15 BoE's Greene speech 2
14:00 S&P Global Construction PMI 1 47.9 47.2 46.6
17:00 Challenger Job Cuts 2 93.816K 105.441K
18:00 Goods and Services Trade Balance 1 $-94.0B $-140.5B
18:00 Initial Jobless Claims 2 235K 240K
18:00 Continuing Jobless Claims 1 1.910M 1.919M
18:00 Initial Jobless Claims 4-week average 1 230.75K
18:00 Unit Labor Costs 2 5.7% 5.7%
Economic Calendar >> Add to your site

Best Mutual Funds

Recent Posts

Search This Blog

IPO's Calendar

Market Screener

NSE BSE Tiker

Custom Pivot Calculator

Popular Posts

Market & MF Screener