Dec 9, 2010
| Last Updated
India’s headline inflation eased on a y/y basis in November, owing to base effects and a slowdown in food and fuel prices from 14% y/y in October to around 9.0% y/y in November. Meanwhile, manufacturing prices and m/m inflation remained firm due to rising private demand. These dynamics will induce the RBI to stay on hold at its December 16 meeting. In recent weeks, the RBI has been injecting money into the banking system to cope with a liquidity crunch and resulting spike in interbank rates. Given inflation risks,[...]
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