India’s retail inflation accelerated more than estimated to a 17-month high and little respite is seen in the coming months amid a surge in oil prices, increasing the odds that borrowing costs will rise sooner than expected.
Consumer prices rose 5.21 per cent in December from a year earlier, the Statistics Ministry said in a statement in New Delhi on Friday, faster than the 5.10 percent Bloomberg consensus. Sovereign bonds fell in extended trading hours on growing concerns about inflation and speculation the government will miss its deficit target for the year through March 2018 when it unveils its budget February 1.
That will be followed by the Reserve Bank of India’s policy review February 7, where most economists predict no change in rates. However swap traders are pricing in the possibility of an increase. Read More…
Latest posts by Business-Standard.com (see all)
- Coal-Power Projects Worldwide, Including India, See Steep Drop - March 22, 2018
- Power Sector Stress May Worsen Banks’ Bad Loan Pain Even More In Q4FY18 - March 22, 2018
- Capacity Utilisation Up In Select Sectors; May Lead To Investment Revival - March 22, 2018