Red hot commodity prices have stung India''s economy dragging down growth and boosting prices. Inflation is now at a three-year high of 7 per cent but this is an election year and the government cannot afford to see prices rise this fast.
The government has fought back cutting import duties and export incentives in select commodities but it might take several weeks before inflation cools off.Analysts differ on inflation expectations with HDFC Bank pegging it at 6.84 per cent and Lehman Brothers estimating it at 7.22 per cent for the week ended March 29.
Dalal Street will also be eyeing on growth numbers which has become a major concern for many. Economists expect IIP to grow at 7.2 per cent in February against January''s 5.2 per cent. IIP numbers could improve because core sector grew 8.7 per cent in February.
Now, all eyes will be on RBI''s next credit meet scheduled for April 29 and bankers expect a CRR hike by at least 25 bps to bring inflation under check.
The government has fought back cutting import duties and export incentives in select commodities but it might take several weeks before inflation cools off.Analysts differ on inflation expectations with HDFC Bank pegging it at 6.84 per cent and Lehman Brothers estimating it at 7.22 per cent for the week ended March 29.
Dalal Street will also be eyeing on growth numbers which has become a major concern for many. Economists expect IIP to grow at 7.2 per cent in February against January''s 5.2 per cent. IIP numbers could improve because core sector grew 8.7 per cent in February.
Now, all eyes will be on RBI''s next credit meet scheduled for April 29 and bankers expect a CRR hike by at least 25 bps to bring inflation under check.
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