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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Lawmakers must not dilute penalties for insurers on mis-selling

    The much delayed insurance laws (amendment) bill is back in the news and the positive statements of finance minister Arun Jaitley suggest that the gov

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

New model for effective education

After interacting with students and teaching community on a ...

Zehra Naqvi

To hell and back

Here is a book that makes you wish there were ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture