Advertisement

HindustanTimes Wed,23 Apr 2014

Inflation still high, says RBI governor

HT Correspondent, Hindustan Times  New Delhi, February 11, 2013
First Published: 18:31 IST(11/2/2013) | Last Updated: 21:21 IST(11/2/2013)

The Reserve Bank of India (RBI) on Monday said inflation above 7% was still high, signaling there might be fewer rate cuts going forward if inflation remains at elevated levels.

Advertisement

"If you take the macroeconomic context today, we will find that growth has moderated, inflation has come off from the peak but even at 7-plus percent is still high," said D Subbarao, governor, RBI.

While retail or consumer-price based inflation jumped to over 10% in December, headline inflation declined to a three-year low to 7.18% during the month.

The RBI had slashed the repo rate by 0.25 percentage points in January, but refrained from spelling out further rate cuts due to concerns about the current account deficit (CAD) -the gap between forex earned and forex spent - and inflation flaring again in the later half of 2013.

Subbarao also cautioned that the country was headed for the highest-ever CAD this fiscal, after it rose to 5.3% of GDP (gross domestic product) in the second quarter.

Advertisement
more from Business

GM seeks US court protection against ignition lawsuits

General Motors Co filed a motion in a US court to enforce a bar on lawsuits stemming from ignition defects in cars sold before its 2009 bankruptcy as it fights proposed class action litigation that seeks to set aside the restriction.
markets
Advertisement
Most Popular
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved