Subbarao says inflation still high

Expectations for a rate cut had gathered momentum after inflation slowed to lowest level in three years
Comment E-mail Print Share
First Published: Wed, Jan 16 2013. 09 51 AM IST
The central bank, which is scheduled to review policy on 29 January, has kept its key borrowing rate at 8% since April. Photo: Abhijit Bhatlekar/Mint
The central bank, which is scheduled to review policy on 29 January, has kept its key borrowing rate at 8% since April. Photo: Abhijit Bhatlekar/Mint
Updated: Wed, Jan 16 2013. 04 39 PM IST
Bangalore: India’s inflation has come off a peak but is still high, Bloomberg quoted the central bank governor as saying, a comment that is likely to cool expectations for a rate cut later this month.
“When growth is slowing down you can stimulate the economy either by monetary easing or by fiscal stimulus, but both monetary and fiscal side have no room for stimulus. So that is the big concern,” Reserve Bank of India (RBI) governor D. Subbarao told management students in the northern city of Lucknow on Tuesday, the news agency said.
Expectations for a rate cut had gathered momentum this week after headline inflation slowed to its lowest level in three years.
The central bank, which is scheduled to review policy on 29 January, has kept its key borrowing rate at 8% since April, defying calls from business and politicians to do more to cushion the economy from a downturn that has dragged it towards its slowest growth rate in a decade. Reuters
Comment E-mail Print Share
First Published: Wed, Jan 16 2013. 09 51 AM IST
blog comments powered by Disqus
  • Wed, Nov 26 2014. 05 35 PM
  • Wed, Nov 19 2014. 04 58 PM
Subscribe |  Contact Us  |  mint Code  |  Privacy policy  |  Terms of Use  |  Advertising  |  Mint Apps  |  About HT Media  |  Jobs
Contact Us
Copyright © 2014 HT Media All Rights Reserved