HDFC-HDFC Bank merger possible: Parekh

Deepak Parekh, chairman, Housing Development Finance Corporation (HDFC) has indicated a possible merger of HDFC-HDFC Bank in near future. However, he did not elaborate his statement on such a proposed move, while responding to a question asked by industrialist Anand Piramal at an event held at Indian Merchants Chamber in Mumbai on Tuesday.
Parekh also said that inflation in India might settle down at 6-7% levels by March 2009. He expects the inflation to fall below the 10%-mark within a month and the country’s growth rate to remain at 7-7.5% in the current fiscal.
“We will wait-and-watch for some time before taking a final call on the interest rates. The deposit rates in the system have to come down first before cutting the lending rates. And, I do not rule out the possibility of more monetary measures being implemented by the Reserve Bank of India,”Parekh added.

Read more at The Financial Express

Inflation dips to 4.36 per cent

India's wholesale price index rose 4.36 per cent in the 12 months to July 21, lower than the previous week's 4.41 per cent due to a fall in food prices, government data showed on Friday.

The rate matched a median forecast of 4.36 per cent in a Reuters poll of analysts.

The annual inflation rate was 4.72 per cent during the corresponding week of the previous year.

The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is published weekly.

Inflation falls to 4.36% as food items turn cheaper

NEW DELHI: Inflation declined to 4.36 per cent during the week ended July 21 as compared to 4.41 per cent for the previous week as some essential food items like pulses, fruits and eggs turned cheaper.

However, prices of certain other food items like vegetables and most manufactured products rose. Fuels like naphtha also became dearer.

The wholesale prices-based inflation stood at 4.72 per cent for the corresponding period a year ago.

The Reserve Bank in its July 31 monetary policy review has raised the rate of mandatory cash deposits that banks have to keep with it by 0.5 per cent to 7 per cent.

It, however, retained its projection for inflation at five per cent for this fiscal and 4-4.5 per cent for the medium term.

RBI hikes CRR rates by 50 basis pts to 7 pc

NEW DELHI: The Reserve Bank Governor Dr Yaga Venugopal Reddy has hiked cash reserve ratio by 50 basis points to 7 per cent while the CRR repo and reverse repo rates as well as the bank rates remain unchanged.

Inflation target for 07-08 remain at 5 per cent according to the first quarter credit policy review unveiled on Tuesday. GDP forecast for FY-08 has been set at 8.5 per cent. The new CRR rate will come into effect from August 04.

The RBI has also removed 3000 crore reverse cap from August 06 The other highlights of the policy are as follows:

• Hedge funds pose significant risks to the markets says credit policy.

• Financial stability to add to market stance says RBI.

• Inflation targeted at 4 to 4.5 % in the medium term. Holding inflation within 5.0 per cent in 2007-08 assumes priority in the policy hierarchy, while reinforcing the medium-term objective to condition policy and perceptions to reduce inflation to 4.0-4.5 per cent on a sustained basis.

• CRR to be used for managing liquidity.

• Domestic outlook was favourable.

• Monetary stance spelt out in February 2007 continues.

• Credit policy guided by domestic policy.

Inflation rises to 4.41 per cent

Wholesale prices-based inflation rate increased to 4.41 per cent for the week ended July 14 from 4.27 per cent the previous week mainly on higher prices of fruits and vegetables, ragi, wheat, jowar, condiments and spices.

The inflation numbers are still within the five per cent annual target of the Reserve Bank, which is due to review the monetary policy on July 31.

The annual rate of inflation was 4.62 per cent in the corresponding week last year.

Among the primary articles, prices of vegetables rose sharply by 7 per cent during the week, while those of cereals rose by 0.9 per cent.

In the non-food articles category, prices of fibre rose by 2.2 per cent.

Read more at Financial Express

Inflation unchanged at 6.09%

Inflation based on the wholesale price index (WPI) was unchanged at 6.09% for the week ended 14 April.

Prices of vegetables, which shot up over 23% during the previous week contributing the most to inflation, declined 5% in the week under review.

Besides vegetables, prices of fruits, urad, coconut oil, naphtha, brass sheets and strips also declined. This was offset by the rise in prices of non-vegetarian food items, gram, groundnut oil, cotton seed oil and ferro silicon. Prices of other products moved in a narrow range.

Inflation at 5.74 pc on March 31

NEW DELHI: India's wholesale price index rose 5.74 per cent in the 12 months to March 31, lower than the previous week's increase of 6.39 per cent, data showed on Friday. The figure was below a forecast of an annual 5.81 per cent in a Reuters poll of analysts but above the central bank's projection of 5.0-5.5 per cent for the end of the financial year. March 31 was the last day of the 2006/07 financial year.

The annual inflation rate was 3.98 per cent during the corresponding week of the previous year.

The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is published weekly.

Inflation continues at 6.46%

India's wholesale price index rose 6.46 per cent in the 12 months to March 17, matching the previous week's increase, data showed on Friday.

The figure was slightly below a forecast of 6.50 per cent in a Reuters poll of analysts.

The annual inflation rate was 3.69 per cent during the corresponding week of the previous year.

The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is published weekly.

India to curb inflation without hurting growth

India is confident it can moderate inflation and the aim is to do so without hurting growth, Finance Minister Palaniappan Chidambaram said on Monday.

"Government, in conjunction with Reserve Bank of India, has taken and will take fiscal, monetary and supply side measures to moderate inflation," Chidambaram told reporters.

"I recognise the burden of the people, but this burden will ease over the next weeks and months."

Read more at The Financial Express

FM confident about reigning in prices, inflation

Expressing confidence about checking soaring prices, Finance Minister P Chidambaram today said inflation would be controlled step by step following a series of measures announced by the Reserve Bank of India.

Admitting that inflation had not come down in the last six weeks, he said: "It is 6.1, 6.3..6.05..6.4 per cent etc... not a big rise in inflation nor a steep fall. It has remained above 6% on an average. I agree it is there."

Inflation surged to 6.46% during the week ended March 3 as against 6.10% in the preceding week.

Similar inflation rates were witnessed in 2000-01 continuously for 48 weeks, and for 22 weeks it even crossed 7%, Chidambaram told reporters at Sivaganga, about 60 km from here, after reviewing various on-going projects in the district.

Read more at Business Standard

China hikes rates to slow inflation, investment

China raised interest rates for the third time in 11 months to curb inflation and asset bubbles in the world's fastest-growing economy, according to a report on the website of Bloomberg.

The one-year benchmark lending rate will be raised to 6.39% from 6.12%, starting tomorrow, the Beijing-based People's Bank of China said today on its website. The one-year deposit rate will be increased to 2.79% from 2.52%. A central bank spokesman confirmed the increases, the report added.

Central bank Governor Zhou Xiaochuan is concerned that cash from a record trade surplus is stoking excess investment, raising the risk of accelerating inflation and boom-and-bust cycles in asset prices. Premier Wen Jiabao said yesterday the nation's economic expansion is unstable and environmentally unsustainable, the report said.

Inflation rate rises to 6.46%

India's wholesale price index rose 6.46% in the 12 months to 3 March 2007, up from the previous week's annual increase of 6.10% due to higher edible oil and naphtha prices, data showed on Friday.

The figure was higher than a forecast of 6.31%.

The annual inflation rate was 3.86% during the corresponding week of the previous year.

Despite govt efforts inflation to remain: Citigroup

Inflation will continue to pinch consumers' pockets till May, by when the government's measures to bring down prices are expected to take effect in a wholesome way, analysts believe.

The rate of price rise soared to 6.46 per cent in the week ended March 3, primarily due to rise in vegetable and cement prices, the latest government data shows.

Read more at Financial Express

Hound hoarders, act: Finmin

Pushed past his limit of tolerance for inflation, Finance Minister P Chidambaram said the government will neither plead helplessness nor remain passive to rising cement prices, while asking states to act against those hoarding primary articles.

Winding up the debate on Budget 2007-08 in Lok Sabha amid noisy protest by the Opposition, the minister said the government "cannot plead helplessness or remain passive" to abnormal rise in prices of the construction material.

Read more at Financial Express