Fitch has cut India's FY12 GDP forecast to 8.3% from an earlier 8.5%, because of high inflationary pressures, according to The Times of India.
The ratings agency also raised its inflation forecast to 7% in FY12. Food inflation reached 10.05% in March, before easing to 9.5% in the week ending March 19. The biggest worry however has been the spread from food and energy to core inflation.
India's Central Bank has launched a full out assault on the country's high inflation, raising its key interest rate by 0.50%. Whether or not India's decision to raise rates will actually have an impact on prices is unknown. It has r... Read Post
China's not the only BRIC with a serious inflation problem. India's is out of control, with both food and fuel prices soaring. Now the government has to act to tame the country's 7.5% inflation rate. The Reserve Bank of India is exp... Read Post
The Reserve Bank of India (RBI) boosted its benchmark repo rate by 25 basis points to 8.5%. The move was in line with expectations. This comes as the country battles to contain inflation. For now the RBI's inflation forecasts are un... Read Post