India's inflation battle
continues.
by MEDIA CONTACT RESOURCES, INC.
Because of what the Reserve Bank of India (RBA) calls,
"effervescent demand," the RBA may take steps to raise
interest rates further to curb inflationary pressures.
In a story that was posted on the website of The Gulf Daily News
(Manama) the investment banking firm Goldman Sachs was quoted as saying
that India is unlikely to experience a "hard landing."
The investment bank came to this conclusion after looking at
India's recent economic history. When viewed against this history,
said the bank, financial conditions were not considered to be very
tight.
The website reported that as of the week ending March 31, 2007,
India's official rate of inflation was 5.74 percent, down from 6.39
percent the previous week. This was the first time in three months the
wholesale price index fell below 6 percent. The wholesale price index is
India's most closely watched indicator or price behavior. The
RBA's inflation target range is between 5.0 percent and 5.5
percent.
COPYRIGHT 2007 Media Contact Resources,
Inc. Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2007, Gale Group. All rights
reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.