These macro developments in India point to high inflation

Even GDP growth is foreseen to slow to 5.6%.

According to BBVA Research, recent macro developments paint a mixed picture for India’s economy given the revival in policy reforms, weak factory activity, high and sticky retail inflation, and unexpected easing in WPI inflation.

Here's more from BBVA Research:

Furthermore, a widening trade deficit and fiscal woes, amid slippages in non-tax revenues, have dragged on the rupee. Against this backdrop, the outturn for Q3 GDP growth will be a key input for the Reserve Bank of India in timing its rate-cut cycle.

While RBI’s cautious stance over inflation suggests reasonable likelihood of further policy easing in 1Q13, a negative surprise in Q3 GDP growth would add to the case for a December policy action.

That said, inflation prints in the run up to the next policy meeting will also warrant close attention. We expect a shallow recovery for India, starting in Q3, with overall GDP growth slowing to 5.6% for full year 2012, down from 7.5% in 2011.



More From Singapore Business Review
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.4036-0.0027-0.19%
    USDSGD=X
    1.5725-0.0021-0.13%
    EURSGD=X
    2.0230-0.0057-0.28%
    GBPSGD=X
    81.8410-0.3599-0.44%
    SGDJPY=X
    5.5521+0.0114+0.21%
    SGDHKD=X
    2.9843+0.0057+0.19%
    SGDMYR=X
    9,732.4658-16.874-0.17%
    SGDIDR=X
    4.6827+0.0077+0.17%
    SGDCNY=X
    0.9876-0.0082-0.83%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,192.30-5.60-0.47%
    GCJ16.CMX
    15.39-0.04-0.23%
    SIH16.CMX
    56.78+1.47+2.66%
    ^XAU
    2.090.00+0.05%
    HGH16.CMX
    29.96+0.27+0.91%
    CLH16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.15-0.10
    ^FVX
    1.74-0.11
    ^TNX
    2.56-0.12
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.33+0.02+4.76%
    N21.SI
    3.70+0.22+6.32%
    Z74.SI
    1.68+0.05+3.07%
    MC0.SI
    0.385+0.010+2.67%
    E5H.SI
    0.705+0.025+3.68%
    G13.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.405+0.065+19.12%
    T4B.SI
    0.475+0.075+18.75%
    Y06.SI
    0.23+0.03+15.00%
    S9B.SI
    0.40+0.05+14.29%
    BJE.SI
    0.144+0.014+10.77%
    AWS.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.34-0.05-12.82%
    MN5.SI
    0.118-0.012-9.23%
    AWO.SI
    0.205-0.020-8.89%
    AYL.SI
    0.505-0.045-8.18%
    A05.SI
    0.193-0.017-8.10%
    S71.SI