Monday, December 29, 2008

India may see deflation 2009: Bankers

Indian economy may go into deflation by the second quarter of financial year 2009-10 as there are fears of inflation going below zero percent in the face of unprecedented fall in crude and commodity prices

'If the current pace in inflation-decline continues, the figure (in WPI-based inflation) may slide below two percent by end-fiscal,' HDFC Bank's deputy head of treasury, Ashish Parthasarathy, said, adding 'it may fall further to below zero per cent by Q2 FY10.'

Inflation almost halved to a nine-month low of 6.61 percent from this year's peak of 12.91 percent, giving more space to the RBI to signal further cuts in interest rates.

Deflation occurs in an economy when the negative inflation prevails for a long period. In the event of deflation, the Reserve Bank will have to enhance money supply and lower rates further 'to support inflation', IDBI Gilts' Economist, Amol Agarwal said."
To read more, please, visit - ZeeNews

Subscribe for free to receive hot Pune real estate news, views and reviews:

1) Ravi Karandeekar's Pune Real Estate Market News Blog

2) Ravi Karandeekar's Pune Real Estate Investment Blog

3) Ravi Karandeekar's Pune Real Estate Advertising and Marketing Blog

4) Ravi Karandeekar's Pune Real Estate Blog

5) Please, feel free to call me on my mobile +91 98600 44110! I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market (so i do not charge anything for the first 8 minutes!)

6) Please, join me on Friendfeed, to share news articles, family photos, interesting links and videos and let us discover and discuss information!

Visit Ravi Karandeekar's Pune Real Estate Blog Group and join for free to receive updates of all blogs!

1 comment:

  1. Hope the Economy stabilizes soon to overcome the financial breakthroughs!

    ReplyDelete