Saturday, December 18, 2010
India to raise interest rates twice in the month of emerging economies "exit" Speed.
<P> Following the Singapore currency appreciation by allowing the tightening of monetary policy, India's central bank announced yesterday raised the benchmark interest rate by 25 basis points, and require banks to increase the cash reserve ratio. .In addition, the Australian yesterday, also hinted the central bank will further raise interest rates, the market is expected to Brazil this month to discuss interest rates was announced 28 interest-rate hikes. .There are signs that emerging economies, "Exit" is speed. .</ P> <P> India "dual rate" while raising </ P> <P> India's central bank tightening force is relatively large, on the interest rate and deposit reserve ratio also increased. .India's central bank said in a statement yesterday, the repurchase rate and reverse repo rate by 25 basis points, respectively, to 5.25% and 3.75% for the second time in a month raised interest rates; the same time the bank also announced that it will reserve .from the original 5.75% rate by 25 basis points, to 6%. .</ P> <P> India's central bank said the rate hike because of the level of inflation concerns. .Analysts pointed out that India's domestic demand despite the heat, but electricity, land transport and port infrastructure is obviously inadequate, with international commodity prices, resulting in non-food price inflation soared. .Data show that consumer prices in India in February rose 14.9% year over year, wholesale prices rose in March to maintain the 17-month high of 9.9%. .</ P> <P> India's central bank expects 2010 to-2011 fiscal year (from April 1 this year, beginning) of the Indian gross domestic product (GDP) of 8%, adding that there is increased possibility. .</ P> <P> India's decision to raise interest rates after the announcement, the Indian rupee and the rapid expansion of stock market gains, the Indian stock market was close to 1% intraday gain. .At the close, India's Mumbai stock Sensitive Index rose 0.38%, to close at 17,466.34 points, the Indian rupee against the U.S. dollar rose 0.2%. .</ P> <P> emerging economies to intensify exit </ P> <P> recent months, Australia, Malaysia, India and Vietnam has been gradually raising interest rates, China is also raising the reserve ratio. .With the current pace of economic recovery, the economy and means of tightening the intent is more obvious in Singapore last week by allowing the appreciation of the new currency to tighten monetary policy, interest rates second month in India, Australia, yesterday hinted the central bank will raise interest rates further .The market will also be expected to raise interest rates in Brazil this month, signs that emerging economies, "Exit" is accelerating. .</ P> <P> Australia's central bank has been raising interest rates ahead of the rest of the world central banks, the central bank this month raised its benchmark interest rate by 25 basis points to 4.25%, for the last 6 meetings to the fifth rate hike. .The bank announced yesterday that the monetary meeting, "As interest rates have remained slightly below average, expected future Policy Committee to raise interest rates further." .</ P> <P> interest rate futures trading shows, expected Brazil's central bank meeting on 28th of this month will raise interest rates at least 50 basis points to 9.25% by next May will rise to 12.5%. .Brazil's interest rate is currently 8.7% a record low, but still well above the U.S. close to zero and 1% in euro area interest rates. .</ P> <P> economic growth of Asia's fastest growing economy of China and India, faces inflationary pressures. .But China's infrastructure spending twice as much in India, so even though China's economic growth rate in the first quarter to the highest level in nearly three years, but inflation declines and it makes the issue of China as India's interest rates as urgent. .However, many international big firms such as JP Morgan predicts that China will begin to raise interest rates this quarter. .</ P> <P> Analysts pointed out that the first quarter of strong economic data in Asia, highlighting the various central banks in Asia has been a substantial tightening of monetary policy after the fall trend. .Data show that Singapore's first quarter economic growth of 13.1% over the same period, China's first quarter economic growth of 11.9% from a year earlier, while the market expected the first quarter of India's economic growth will exceed 8.5%. .</ P> <P> Asian Development Bank announced last week, "Asian Development Outlook Report," also points out that as Asian economies out of the global crisis, the Asian monetary policy exception can not be maintained for too long, must be restored to normal level .to avoid accelerating inflation and asset bubbles forming. .</ P>.
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