Rate cuts won't revive India's stalled growth: Andy Mukherjee

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GDP growth will pick up when New Delhi curbs its own profligacy and improves the investment climate. (Reuters) GDP growth will pick up when New Delhi curbs its own profligacy and improves the investment climate. (Reuters)
SummaryGDP growth will pick up when New Delhi curbs its own profligacy and improves the investment climate.

monetary developments, the central bank said that an improvement in investment climate is a "prerequisite for economic recovery" and that the "quality of fiscal adjustment remains a concern." Risks remain from "suppressed inflation, pressure on food prices and high inflation expectations getting entrenched into the wage price spiral," the monetary authority added.

*While demand conditions are "tepid," a current account deficit of more than 4 percent of GDP for a second straight year makes it necessary for the authorities to remain prudent while stimulating aggregate demand, the Reserve Bank said.

*Reuters: India's central bank cuts policy rate by 25 bps, as expected.

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