Tuesday 30 October 2012
OUTLOOK
The Finance Minister got into action again and announced he would nearly
halve the deficit in just over four years. Expectations are that such
an announcement could increase the chances a rate cut today.The rupee weakened past the 54-level against the dollar ahead of RBI
meet. The RBI has indicated that it’s ready to support growth and ease
interest rates if “macro-risks from inflation and twin deficits recede
further”. In its ‘Macroeconomic and Monetary Developments Second Quarter
Review 2012-13,’ the RBI said, “Growth-inflation balance warrants
careful policy calibration as growth slows but inflation risks persist."
A CRR cut is widely expected. Will the RBI oblige on a rate cut, we
will know in a few hours.
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