In its Macroeconomic and Monetary Development Report, RBI has cautioned that though the growth will improve, but inflation will stay sticky

Search News

RBI Released Macroeconomic and Monetary Developments in 2012: RBI in its Macroeconomic and Monetary Development Report has cautioned that inflation is likely to remain "sticky" at the current level through out the fiscal (2012-13). It hinted at lowering interest rates saying that focus of monetary policy needs to be shifted to arrest declining growth while keeping inflation under control. The inflation was 6.89 per cent during March, while the growth during 2011-12 declined to three-year low of 6.9 per cent. The government, however, has pegged it at 7.6 per cent for the current fiscal. The report warns that high oil prices and suppressed inflation will leave this at the current levels in the new fiscal and that excessive consumption demand has to be curtailed. "The path of inflation in FY13 could be sticky with high oil prices, large suppressed inflation, exchange rate pass-through, impact of (indirect) tax hikes, wage pressures and structural impediments to supply response," the central bank report said. "Growth is likely to improve moderately in 2012-13, supported mainly by a pick-up in industry on the back of consumption demand and some improvement in investment," the report says, adding however, the recovery may be slow in the current fiscal, especially in the first half. According to the RBI-appointed Professional Forecasters' Survey, the 2012-13 growth is pegged at 7.5 per cent, which is 10 basis points below the government projection for the year.

Find Lawyer / Law Firm

GST Implication on Builder or Real Estate Developer

With the rapid urbanisation in the country, real estate industry and construction industry in India is moving towards rapid growth serving as a vital sector in the Indian economy. It is expecte More

Legal Consultation - Consult over phone, chat or send questions

Helplinelaw can set up your session with quality and experienced lawyers to discuss and resolve your legal matters. You can avail consultation in form of sending questions, phone call or webchat discussion  More