The Reserve Bank of India, like most emerging market central banks, will closely follow what its American counterpart has been doing, but “need not follow every step of what Fed does,” said Rao in an interview with Bloomberg.
Reacting to CPI inflation data, top economists say it is much in line with expectation and they see no reason for the numbers to exceed 5 percent as had been cautioned by the Reserve Bank.
The Reserve Bank of India on Tuesday released the minutes of the first monetary policy committee (MPC) meet.
Should that prove correct, it would put inflation further above the Reserve Bank of India's target of around 5 percent by March 2017 and 4 percent over the medium term and mean it is uncomfortably close to January's 17-month high of 5.69 percent.
The BoP surplus in the October-December quarter stood at USD 4.1 billion against USD 13.2 billion year-on-year, according to RBI.
Shubhada Rao of YES Bank sees consumer price inflation averaging around 5.8-5.9 percent in 2015. Chetan Ahya of Morgan Stanley expects CPI to drop to 4.5 percent in November
Falling for the second straight month, retail inflation declined sharply to 9.39 per cent in April due to easing of prices of vegetables, edible oil and protein-based items.
Leading private sector bank, Yes Bank's GDP growth estimate for economy is 50 bps lower at 5.9 percent in comparison to Prime Minister's Economic Advisory Council‘s estimate of 6.5 percent announced today.
There was finally some good news on the economy. Industrial production in February did better than expected and consumer prices, while contusing to inflate, are rising at a slower pace.
One negative surprise this time are low remittances, which are typically much more as the October-December quarter sees much larger remittances on account of festive-related spending being sent back.
Economists Samiran Chakrabarty of Standard Chartered Bank and Shubhada Rao of YES Bank discuss on CNBC-TV18, in the backdrop of a rise in the current account deficit to 5.2 percent, that the RBI may cut rates gradually to support growth and stem the impact of the rising fiscal and current account deficit.
India's wholesale price index (WPI) rose a slower-than-expected 7.45 percent in October from a year earlier, government data showed on Wednesday.
Shubhada Rao, chief economist, YES Bank and. Ajit Ranade, chief economist, Aditya Birla Group discuss the probability of the much-expected cut in rates and explains other attendant issues on CNBC-TV18.
The stock market has rallied over 400 points, cheering the government decision to cut diesel price by sharp Rs 5/litre and Ben Bernanke‘s decision to pump in USD 40 billion via bond purchases to improve the US economy. However, both the events do not warrant any immediate change in the monetary policy stance by the Reserve Bank of India (RBI).
YES Bank chief economist Shubhada Rao explains to CNBC-TV18 that she does not expect the RBI to initiate a rate-cut. Rao adds that every corner of the economy presents a worrying situation characterised by government inaction, weakening growth and persistent elevated inflation.
All eyes are now on the May inflation data expected on July 16, as it is crucial to the Reserve Bank of India's monetary policy review. Economists feel that the central bank is unlikely to move key rates in its monetary policy review on July 31.
The government has a lot on its plate right now – from the freefalling rupee to the twin deficits which are spiraling out of control. But it dealt the biggest blow to the common man today by hiking petrol prices effective from midnight with the steepest ever increase of Rs 7.50 per litre.
Finance Minister Pranab Mukherjee is sure to be an unhappy man after Standard & Poor's cut India's outlook to negative from stable.
In an interview to CNBC-TV18, Shubhada Rao, chief economist of Yes Bank and Gaurav Kapur, senior economist of RBS speak about their expectations from the central bank.
Experts tell CNBC-TV18 that the GDP growth figure for the third quarter, due tomorrow, could be as low at 6.4%.
Shubhada Rao, chief economist, Yes Bank believes that Reserve Bank of India's (RBI) macro economic policy report is less hawkish, though it is not completely dovish and expects a CRR cut tomorrow.
The core index rebounded in November with a 6.8% growth compared to 0.1% in October. Experts discuss the core index numbers and give their outlook going forward.
Industry experts tell CNBC-TV18 that they are not shocked with the GDP number, and that it is inline with estimates.
Even though the Indian currency is breaking lows, experts believe that this is not the end of the rupee’s bearish rally.
The Index of Industrial Production (IIP) growth for the month of July, 2011 saw a sharp decline at 3.3% compared to previous month. TCA Anant, chief statistician of India and Shubhada Rao, chief economist at YES Bank discuss what this fall means for the economy going forward and the ramifications on the RBI's policy stance.