Reserve Bank of India (RBI) Governor D Subbarao today said inflation was a big worry as demand side pressures were building up in the economy.
"Generally, there is a resurgence of positive sentiment. The big worry, though, is inflation,"Subbarao said while addressing a bankers' meet here.
"Demand pressures are building up, as supply side pressures have yielded to demand side pressures," he said. "Supply side pressures are abating, but slowly," he added.
Subbarao also said the final March inflation rate could be revised to double digits from the provisional estimate of 9.9 per cent.
Last week, the government had revised the final inflation rate for February to 10.06 per cent from 9.89 per cent. Subbarao said one of the reasons demand pressures were building up was the government partially exiting the fiscal stimulus. The Budget for 2010-11 had raised the general excise duty by 2 percentage points to 10 per cent.
He said there was some upward pressure on wages and asset prices were also building up rapidly. One needs to watch out for structural inflation, he warned.
"If there is structural inflation, it may take some time to come down," he said, adding RBI did not have a firm view on whether there was structural inflation in the economy.
Subbarao said the short-term aim of the central bank was to restore the economy to the trend growth without compromising price stability.
The medium-term aim was to raise the trend growth without compromising financial stability, he said. On the outlook for the Indian economy, he said growth was consolidating and getting broad-based.
Meanwhile, RBI Deputy Governor Subir Gokarn said the regulator was aware that its policy rate was out of line with inflation.
Thursday, May 20, 2010
Inflation a big worry, demand side pressures building up: Subbarao
Industry Research Reports
LIC Term Insurance or Pvt Life Insurance Term Plan ? Which is the best term insurance in India ? Which Insurance company has the best cla...
આજકાલ કોઈપણ સમસ્યા હોય લોકો એન્ટિબાયોટિક્સ અંગ્રેજી દવાઓ લેવાનું વધુ પસંદ કરતાં હોય છે કારણ કે આજની પેઢીને આપણા જુનવાણી નુસખા વિશે જાણ હોત...
Introduction The Japanese began using candlestick patterns for over 100 years before the West developed the bar and point and figure syst...
મ્યુચ્યુઅલ ફંડ્સના સોદામાં ઉચ્ચ સ્તરની પારદર્શકતા આવે તે હેતુથી શેરબજાર નિયમનકારી સંસ્થા સેબીએ એજન્ટ્સને ચૂકવેલું પુરેપુરું કમિશન જાહેર કરવ...
સેબીએ કોમોડિટી ડેરિવેટિવ્ઝ માર્કેટના નિયમનને કડક બનાવ્યાના એક વર્ષ પછી કોમોડિટી એક્સ્ચેન્જિસની વૃદ્ધિના પગલાની શરૂઆત કરી છે. MCX અને NCDEX ...
સીબીઆઈ કોર્ટે બુધવારે એફટીઆઈએલ જૂથના સ્થાપક જિજ્ઞેશ શાહને 26 સપ્ટેમ્બર સુધી પોલિસ કસ્ટડીમાં રાખવા આદેશ આપ્યો હતો. સીબીઆઈએ 30 સપ્ટેમ્બર સુ...
Equity Linked Savings Scheme (ELSS) is the best tax saving (Section 80C) investment option for investors looking to create long term w...
મેનેજમેન્ટ સ્નાતકો માટે ઇન્વેસ્ટમેન્ટ બેન્કિંગમાં કારકિર્દી હંમેશા આકર્ષક રહી છે. જોકે, હવે આ સેક્ટરના પડકારોને લીધે ઘણા મેનેજમેન્ટ સ્નાત...
While investing in Mutual Funds, you go through fund reviews, watch funds performance, track historical performance, find out what ex...
The Federal Open Market Committee (FOMC), a branch of the US Federal Reserve Board that decides US monetary policy, meets eight times ever...