India: Economy weakens as Central Bank leaves interest rate at 8 per cent
Linkedin

India: Economy weakens as Central Bank leaves interest rate at 8 per cent

New Delhi : India | Jun 18, 2012 at 9:43 AM PDT
By send a private message
XX XX
Views: Pending
 
Emerging Markets Investment Risks - Will the European debt crisis impact BRIC markets?

India is struggling with trade and budget deficits and a slowing economy coupled with high inflation. Many analysts expected that India would cut its interest rate to stimulate the economy but the bank left the rate at 8 per cent to tame inflation.

The vast majority of economists predicted that the rates would be cut. After the decision Fitch Rating industry cut the sovereign debt rating of India to negative. A falling rupee is contributing to the high inflation as imports become more expensive. The inflation rate is above 7 per cent a contrast with the situation in many developed countries where inflation is low.

In the first quarter of this year Indian GDP rose 5.3 per cent. The goal was for 9 per cent growth. Growth last quarter was lowest since 2003. The inflation rate at 7.55 is highest in the BRIC group of countries. For more see this article.

.

Back
1 of 16
Next
India is struggling to tame inflation, which is running at 7.31 percent
India is struggling to tame inflation, which is running at 7.31 percent
northsunm32 is based in Brandon, Manitoba, Canada, and is an Anchor for Allvoices.
Report Credibility
 
  • Clear
  • Share:
  • Share
  • Clear
  • Clear
  • Clear
  • Clear
 
READ MORE: India, Indian Economy, Indian interest rates, inflation
More News From: New Delhi : India
 
Advertisement
 
Post a Comment Comments: 3
Reply
Posted By Deepizzaguy George Vieto | 11 months ago
Thank you for sharing the news report from India.
​
Reply
Posted By ahol888 Adrian Holman | 11 months ago
India should be OK. It's better than the US situation with the interest rate at zero percent, which means that the US economy could crumble at any time.
​
​
Advertisement
 

News Stories

 

  • Fitch downgrades India's outlook to negative

    DAWN
    Fitch Ratings downgraded India's credit outlook from stable to negative Monday, saying that the country's growth potential will deteriorate without a quickening of structural reforms. The latest blow to India's economy follows a similar downgrade by...

  • Govt trying to improve foreign investment inflow: FM

    Indian Express
    M '+google_ads[i].line2 +'  '+google_ads[i].line3 + ' Agencies : New Delhi, Tue Jun 19 2012, 14:04 hrs The government is taking steps to improve inflow of foreign investment and the impact of the initiatives will become visible after some time,...

  • Fitch downgrades India's outlook

    BBC
    Fitch warned India's growth potential "will gradually deteriorate if further structural reforms are not hastened". It also added that the government had made little progress on reducing its deficit. The downgrade comes just days after Standard & Poor'...

  • Rupee slumps to record low of 56.57 against dollar

    NewKerala
    The partially convertible rupee was trading weak for the fourth consecutive session. The rupee opened weak at 56.40 against a dollar and hit a record low of 56.57 at around 1.23 p.m. at the Interbank Foreign Exchange market, breaching its previous...

  • India to take steps to improve its credit rating

    NewKerala
    Finance Minister Pranab Mukherjee said this in New Delhi on Tuesday. Fitch Ratings cut its credit outlook for India to negative from stable, nearly two months after rival Standard and Poor's made a similar call, citing risks that India's growth...

  • Fitch downgrade to hit India's image as investment destination

    Times of India
    Fitch's downgrade of its outlook on the Indian economy comes close on the heels of S&P last week unveiling a report which strongly criticised the government's inability to move ahead with economic reforms and referred to cracks in the ruling...
More Related Stories

Blogs

 >

  • Are the Brics going to lose an I?

    www.pmflegal.com
    That's the Standard & Poor's latest warning on India, coming just two months after it revised the country's BBB- rating (one notch above junk) from stable to negative as GDP growth fell to 5.1 per cent in the first quarter. Are the ...

  • India and Pakistan struggle in different ways | Virtue Politics

    www.virtuepolitics.com
    ... growth slowed to around 5.3 per cent, with a dramatically fall in foreign investment; major inflation, and debt-to-GDP of 70 per cent. Meanwhile ratings agency Standard and Poor's (S&P) warned that India could become the first BRIC to

  • Keep Debt Crisis Eyes on Italy and India :: The Market Oracle ...

    www.marketoracle.co.uk
    Aside from India, the BRIC group also includes Brazil, Russia and China. "Fiscal slippage, combined with persistently high inflation, could further weaken investor confidence," S&P said in a linked report. "Both the government'

  • The S&P is wrong about Manmohan and Sonia | Firstpost

    www.firstpost.com
    Authors Mukherji and Ogawa say S&P will not downgrade India if the following happens: modest steps in cutting growth in spending, 7 percent or more GDP growth, modest progress in reducing the fiscal deficit and some reforms and ... S&P fears

  • Business: S&P: more ranting than rating

    erikvonmarkovik87.blogspot.com
    ... rapid growth in India? The report blamed the "shared leadership in the Center" as one of the biggest hurdles for ushering in economic reforms to stimulate growth and encourage investment. ... China was the first BRIC sovereign to

  • Asiana21: INDIA'S RATING

    asiana21.blogspot.com
    The stock markets went into a tailspin and the rupee resumed its free fall on Monday, following an ominous Standard & Poor's (S&P) report titled 'Will India be the first BRIC fallen angel?'. ... of the way India is run, S&P
More Related Blogs

Images

 >
 
More Related Images

More From New Delhi

Obama lifts order on Gitmo

Obama lifts order on Gitmo

Multiple explosions, heavy gunfire rock Kabul (Video)

Multiple explosions, heavy gunfire rock Kabul (Video)

On Tennessee Valley Authority, Republicans seek to defend New Deal from Obama

On Tennessee Valley Authority, Republicans seek to defend New Deal from Obama

Syrian government agrees to attend international peace conference

Syrian government agrees to attend international peace conference

Washington bridge collapse closes main I-5 route from Mexico to Canada

Washington bridge collapse closes main I-5 route from Mexico to Canada

Zimmerman's murder trial draws near so let the smear campaign begin (Video)

Zimmerman's murder trial draws near so let the smear campaign begin (Video)

2 arrested, fighter jets scrambled after threat aboard plane from Pakistan to England

2 arrested, fighter jets scrambled after threat aboard plane from Pakistan to England

Holder not likely to stay on as attorney general for duration of Obama's term (Opinion)

Holder not likely to stay on as attorney general for duration of Obama's term (Opinion)

More From Allvoices

Cartoons of The Day

Report Your News Got a similar story?
Add it to the network!

Or add related content to this report

News Stories | Blogs | Images | Videos | Comments

 
Tap_logo_330_110_event
 

Most Viewed Reports

Most Commented Reports

Contributor Report


Use of this site is governed by our Terms of Use Agreement and Privacy Policy.

© Allvoices, Inc 2008-2013. All rights reserved.