V Anantha Nageswaran
A table of inflation rates in many countries around the world is beginning to reveal a disturbing picture. The lowest rate is found in Germany – at 3.0%. Many emerging countries that seem to be doing a truthful job are reporting inflation rates in excess of 10% and some in excess of 20%. […]
Chandra Kochar, joint managing director and chief financial officer of India’s largest privately owned bank, $80 billion ICICI Bank, is bullish on India growth story. She contends that the growth in India is shifting from consumerism to manufacturing and infrastructure.
In the last five to seven years, India has grown on the basis of its knowledge […]
Well my advice on this one - the galloping elephant part (you know, we’ve had the Tigers, the Lynxes, and the Giant Panda, and now its the turn of the Thundering Elephant to lead the global economy onwards and upward) - is not to try it. The very least that could happen is you get […]
…likely for the Maharashtra government.
The BBC reports that the World Bank is considering the first ever proposal for a loan of $3.5 billion to be disbursed and repaid in rupees and not the US dollar. This is being done to ostensibly counter the fluctuating rupee- dollar rate. However, it needs no saying that a continually […]
…to counter the rising rupee.
Professor Kaushik Basu of the Cornell University believes that the rise of the rupee against the dollar is inevitable in the mid-term. He also believes that the sudden collapse of the dollar is unlikely but there is not much that India can do to alter the current dynamics of exchange rates.
[…]
Prashant wrote to me earlier this week to bring a recent blog post (and Business Standard article) from Ajay Shah to my attention. Essentially Ajay is arguing the following:
“a lot of what is going on is owing to procyclical (i.e. destabilising) macro policy. I emphasise the distinction between the long-term trend and the business cycle. […]
Given the rise in inflation, it was inevitable. The RBI just announced its decision to increase short-term interest rates by 25 basis points.
The central bank lifted its reverse repo rate, used to drain liquidity from the money market, by a quarter of a percentage point to 5.25 percent, prompting stocks and the rupee to firm […]
As per the India Stock Blog
The Rupee is fundamentally weak, but has been propped up by overly positive sentiments of Foreign Institutional Investors (FIIs), which are now moderating…
Factors weighing on the Rupee:
Trade and Current Account Deficit
On the surface it would appear that oil would be the cause of the widening trade deficit. But non-oil imports […]