The Associated Chambers of Commerce & Industry of India

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ASSOCHAM expects RBI to keep key interest rates unchanged in its Feb 7 monetary policy review

 

Friday, February 02, 2018


Mumbai, February 2, 2018:
Apex industry body ASSOCHAM expects the Reserve Bank of India (RBI) to keep key interest rates unchanged in its monetary policy review due on February 7, more so as inflation is forecast to stay high as it breached the authority’s target.
 
In a communication addressed to RBI Governor, Dr Urjit R. Patel, the ASSOCHAM highlighted that divergence in sequential trend in consumer price index (CPI) and wholesale price inflation (WPI) in December was driven by food inflation and impact of higher housing inflation.
 
“The dip in the inflation for primary food articles in the WPI for December 2017 may signal some correction in the CPI inflation for food items in the ongoing month,” said Mr D.S. Rawat, secretary general of ASSOCHAM in a communication addressed to Dr Patel.
 
“This leaves very little leeway for the RBI to cut rates,” he added.
 
While wholesale food inflation decelerated to 4.72 per cent in December against 6.06 per cent in November, food inflation increased to 9.16 per cent against 8.82 per cent during the same period.
 
Besides CPI accelerated to 17-month high of 5.21 per cent in December from 4.88 per cent a month ago. The retail inflation ranges for second half of current fiscal to 4.3-4.7 per cent from 4.2-4.6 per cent projected in October on account of rising global crude oil prices.
 

About ASSOCHAM:

ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations, and serving over 4.5 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on www.assocham.org
 
For further details, please contact:
 
Manju Negi
AVDHESH SHARMA    
ASSOCHAM
ASSOCHAM    
011-46550509; +919810910911
011-46550508; +918527639419

 

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