inflationary pressure

The Reserve Bank today said the option of going for another round of rate hike at its next mid-quarterly policy review in September do exist as inflationary pressure continues in the economy. Full Article

Admitting that the Reserve Bank’s anti-inflation monetary measures may impact growth, Finance Minister Pranab Mukherjee on Friday said the major challenge right now is to contain price rise. 'The monetary policy has been gradually tightened... Monetary measures may end up moderating the growth if they have to be persisted for an extended period of time,' Mr. Mukherjee said at an Assocham meet here. Full Article

Ahead of the Reserve Bank's quarterly monetary policy, RBI is likely to signal interest rate hikes to suck out liquidity from the market and check prices from spiraling further. Reserve Bank may also raise the amount banks need to park with the apex bank (CRR) by up to 50 basis points. Reserve Bank could raise the short-term borrowing (reverse repo) rate by 25 basis points. Reserve bank is likely to hike cash reverse ratio by up to 50 basis points. Full Article