Inflation is not structural, UBS says

Tags: Economy
The consumer price index will moderate to 6 percent by January 2016, in line with the Reserve Bank’s (RBI) inflation target, UBS said.

UBS said inflation in India is not "a structural issue", adding that it is a demand-supply issue that can be addressed with monetary policy.

Inflation targeting by the RBI is already enjoying "some success" in bringing inflation under control, UBS said.

It expects the central bank to keep rates on hold till late FY2015.

UBS expects the 10-year government bond yield at 6.5 percent by end FY16 vs the previous forecast of 7 percent.

EDITORIAL OF THE DAY

  • Mental illness needs to be treated not dismissed as madness

    We’re all mad here.” So said the Cheshire cat to Alice (Alice in Wonderland, Lewis Carol). It’s a matter of perspective who we call mad.

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Amita Sharma

Sanskrit: a victim of academic schizophrenia

J Robert Oppenheimer, the father of the atomic bomb and ...

Zehra Naqvi

God save the child

Childhood is supposed to be the best phase in life. ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture