RBI SIGNALS RATE HIKE, BUT NOT YET
V. Ramakrishnan
Reuters India, June 23, 2008
PUNE, India (Reuters) - The Reserve Bank of India (RBI) signalled on Monday it would tighten monetary policy further to tackle double-digit inflation but cooled bond market expectations that an aggressive interest rate rise was imminent.
Headline inflation surprised markets on Friday with a jump to an annual rate of 11.05 percent in early June from 8.75 percent at the end of May, and the finance ministry said at the weekend it expected the central bank to tighten policy.
The benchmark 10-year bond yield jumped 13 basis points to its highest in nearly seven years at 8.76 percent on Monday on nervousness that an immediate increase in interest rates was on the cards, after a surprise lending rate rise in early June.
But economists said that while RBI chief Yaga Venugopal Reddy's comments on Monday still indicated tighter policy to come, it may not happen quite as quickly as the market had anticipated.
(...) [artículo aquí]
V. Ramakrishnan
Reuters India, June 23, 2008
PUNE, India (Reuters) - The Reserve Bank of India (RBI) signalled on Monday it would tighten monetary policy further to tackle double-digit inflation but cooled bond market expectations that an aggressive interest rate rise was imminent.
Headline inflation surprised markets on Friday with a jump to an annual rate of 11.05 percent in early June from 8.75 percent at the end of May, and the finance ministry said at the weekend it expected the central bank to tighten policy.
The benchmark 10-year bond yield jumped 13 basis points to its highest in nearly seven years at 8.76 percent on Monday on nervousness that an immediate increase in interest rates was on the cards, after a surprise lending rate rise in early June.
But economists said that while RBI chief Yaga Venugopal Reddy's comments on Monday still indicated tighter policy to come, it may not happen quite as quickly as the market had anticipated.
(...) [artículo aquí]
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