Sajjid Z Chinoy, Chief India Economist, JPMorgan says governor Rajan has made it amply clear that there may be further tightening if any of the macro variables change - either the fisc goes off track or the currency comes under pressure or growth picks up, among others.
Though this rate hike has not come as a complete surprise, but it is difficult to understand what is going through RBI‘s mind in terms of inflationary process, feels Samiran Chakraborty, Hd-Research, StanChart Bank.
Sajjid Z Chinoy, Asia Economics, JPMorgan says the main disinflationary force has been the cooling of vegetable prices. Retail vegetable prices have corrected by more than 30 percent and the first 10 days of January has already seen another 20 percent cooling.
Sajjid Z Chinoy of JPMorgan explains that flat GDP growth is preventing any appreciation in the rupee despite significant FII inflows. Chinoy explains, on CNBC-TV18, that the government needs to usher in fiscal discipline to offer the RBI enough room to cut rates and boost growth.
Sajjid Z Chinoy, Asia Economics at JPMorgan expects tomorrow‘s CPI reading to remain at elevated levels.
Sajjid Z Chinoy, economist (Asia) at JPMorgan says the sharp decline in new orders, which are a reliable indicator of the output in the coming months, point to an impending slowdown.
PMEAC chairman C Rangarajan has projected a 8.6% gross domestic product growth in FY11 and a 9% growth in the following fiscal. However, Sajjid Z Chinoy, Asia Economics, JP Morgan feels that given the high frequency indicators, it is very unlikely to see such pickup in the private capex cycle.
India's current account deficit in the September quarter widened to a record high of USD 15.8 billion. In an interview with CNBC-TV18, experts speak about the numbers and give their outlook going forward.