The Mint Report for 17 November 2011
The Mint Report for 17 November 2011
The revised limit has no residual maturity obligation, which gives FIIs a lot more room to maneuver. Speaking about the move, RBI deputy governor Subir Gokarn said that while greater debt exposure always meant greater risk, the benefits outweighed the negatives. Among other things, FII inflows could help stem the continuing fall in the value of the rupee.
There’s a sign India’s food inflation is easing a little bit. The food price index rose 10.63% in the week to 5 November. In the previous week it stood at 11.81%. Food inflation has remained high despite 13 rate hikes by the Reserve Bank. Last month, RBI had indicated it may not increase rates again if wholesale inflation eased by December.
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