MP Rana
Inflation, assisted by the fall in prices of minerals and aviation fuel has reached the lowest in past ‘ten-months’. The relief is believed to continue for sometime owing to the rate cuts recently announced.
Standard Chartered Bank’s economist opines that the value should further go down to a range of 5-5.5 and even lessen to 1.5-2 percent by March end. She also said that trimming of repo and reverse repo rates is expected, which can be up to 100 basis points. The announcement is believed to come prior to or as part of the policy meet to be held on 27th January. Presently, the repo rate stands at 6.5% and reverse repo is at 5.0%.
The ups and downs in the Whole sale Price Index of the nation has been an absolute roller coaster ride. The magnitude went up 6.38% in last one year and currently is even less than half of where it stood in August. In this month, it shot up to 12.91%. The magnitude is well within RBI’s estimate of 7% for 2008-09.
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