• From The BBC:

    India’s economy grew at a slower-than-expected annual rate of 7.9% in the three months to June, its slowest rate of growth in more than three years.
    This compared with 8.8% in the previous quarter and 9.2% seen in the same quarter a year earlier.
    High interest rates, rising oil and food prices are likely to contain growth at about 7.5%, analysts said, down from 9% or more in previous years.
    India has struggled to contain inflation, which is at a 13-year high.
    Monetary tightening
    The Reserve Bank of India has been raising rates to cope with rising inflation, and they now stand at 9%, an increase of 1.25% since April.
    “These are numbers that shouldn’t surprise,” said Saumitra Chaudhury, a member of the Prime Minister’s Economic Advisery Council.
    “When you have monetary tightening, you do get lower growth. That was expected,” he said. “But it’s not terribly low; 7.9% is still high by historical standards.”
    Analysts doubt the central bank will ease interest rates.
    “In the face of…

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    Posted by Jon @ 9:56 am

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