Yesterday Governor Raghuram Rajan kept policy rates unchanged.
International crude oil price made a direct impact on inflation in India. While GDP is hovering at 10 years lowest level, Finance Mister Arun Jaitley's led finance ministry proposed RBI to loosen policy rates so that people have money in their hands and demand levels will increase.
Cheaper Oil increased government's revenues as Government increased excise duty on Petrol and
Diesel by Rs 2.25 and Rs 1 respectively. It is expected that this will add Rs 4000 to public exchequer by March 2015. There are rumours that prices of petrol will be decreased by Rs 2 soon.
Diesel by Rs 2.25 and Rs 1 respectively. It is expected that this will add Rs 4000 to public exchequer by March 2015. There are rumours that prices of petrol will be decreased by Rs 2 soon.
RBI is targeting 6% inflation rate by January 2015
Data source -
Mospi
Ministry of natural and petroleum gas
RBI.org
QZ.com
