‘Wholesale-price trend signals deflation’

‘Wholesale-price trend signals deflation’
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First Published: Mon, Mar 16 2009. 10 24 PM IST
Updated: Mon, Mar 16 2009. 10 24 PM IST
Mumbai: India’s inflation rate, which is at a six-year low, may turn negative starting next month and stay so until end-2009, signalling deflation, Goldman Sachs Group Inc. said on Monday. The drop in wholesale prices may prompt the Reserve Bank of India to cut the cash reserve ratio by up to 150 basis points by mid-2009, Tushar Poddar and Pranjul Bhandari, economists with Goldman Sachs in Mumbai, wrote.
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First Published: Mon, Mar 16 2009. 10 24 PM IST
More Topics: Deflation | Inflation | Economy | Goldman Sachs | India |