2010: RBI behind the curve, food inflation will force rates up

We said:

The spill over effects of higher food prices are already starting to be felt a core inflation has started rising rapidly. Unless the Reserve Bank of India becomes more proactive, it risks keeping a check on inflation. The RBI will come under increasing pressure to act as inflation rises even further in the next two to three months. The government’s 8% GDP growth projection for FY11 is plausible only at the cost of high inflation well beyond the central bank’s stated tolerance level of 5% - which in turn spells more aggressive back-loaded tightening in H2/FY11. Therefore, we expect slower growth in FY12.(India note 4th March 2010).

Outcome:

RBI forced to begin hiking cycle at emergency meeting on 19th March 2010. Rate up from 4.75% in March 2010 to 8.5% by October 2011. GDP slowed from 8.4% in 2010 to 6.5% in 2011 and 5% in 2012. 

Economics

02 Feb 2005
01 Sep 2004
12 Aug 2004
05 May 2004
20 Jul 2000
01 Apr 1999
06 Jan 1999
01 Sep 1997
06 Jun 1995
10 Feb 1994
10 Mar 1993
06 Feb 1992
10 Dec 1991
03 Jan 1990

Politics

Markets

15 Apr 2016
16 Oct 2015
25 Nov 2013
20 Dec 2012
20 May 2004
03 Jul 2001
VIDEO

Video

View our summary videos on fast trending topics. To listen to a recording of our Conference Calls, please get in touch with zdl@tslombard.com

READ MORE
TRACK RECORD

Track Record

We have a 29 year track record of successful calls. Many of these calls combined economic, political and market analysis.

READ MORE
PRESS

Press

To request an interview with a member of our team, please get in touch zdl@tslombard.com .

READ MORE

Menu

Client Login


Don't have an account? CREATE YOUR ACCOUNT
READ MEET TALK