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

  • Reforms to expect in the near future that befit Modi’s style of governance

    As prime minister Narendra Modi himself told the civil services officers, fruits of economic reforms can be enjoyed only when they put an end to red t

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Disequilibrium : THE UGLY AND INCONVENIENT TRUTH

Same song, different verse. The time for polemics over how ...

M S Swaminathan

Double the money

Both the National Policy for Farmers’ and the reports of ...

Zehra Naqvi

Interconnectedness of every life form

Human hubris makes us imagine ourselves as masters of the ...