Nifty99000 100%

Sensex99000 100%

Article rating: 4.3
Article rating: 4.1
Article rating: 4.3
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: 4.0
Article rating: No rating
Article rating: 3.0
RSS

News

Re depreciation to push inflation higher: IMF

Author: PTI/Wednesday, September 19, 2018/Categories: Currency

Re depreciation to push inflation higher: IMF

Washington - The real effective depreciation of the Indian rupee this year as compared to December 2017 is between six and seven per cent, said IMF which warned that it would jack up the prices of imported goods such as oil and petroleum products, potentially putting an upward pressure on inflation.

Since the beginning of the year, the Indian rupee “has lost about 11 per cent of its value in nominal terms vis a vis the US dollar”, Gerry Rice, International Monetary Fund (IMF) spokesperson, said.

He was responding to a question on the fall of the Indian currency in the last few months.

He, however, said the currencies of many of India’s trading partners, including those in the emerging markets, too have depreciated against the dollar.

“As a result, so far this year the real effective depreciation of the Indian rupee compared to December 2017, by our estimates, is between six and seven per cent,” Rice said.

Observing that India is a relatively closed economy, he said the contribution of the net exports to growth in the April to June quarter was again stronger than expected and the real depreciation of the rupee can be expected to reinforce this trend.

“On the other hand, the depreciation will obviously raise the prices of imported goods such as oil and petroleum products, potentially putting an upward pressure on inflation,” he said.

The Reserve Bank of India has taken the rising oil import prices into account when it raised the policy rates in its last two meetings, he noted.

Referring to a recent report of the IMF on India, Rice said the Indian economy was recovering strongly from the two transitory disruptions in recent years - the Goods and Services Tax (GST) and demonetisation.

“Growth has been gradually accelerating in recent quarters, with strength in both consumption and investment, which have helped the economy,” he said.

Noting that the first quarter growth figures were somewhat stronger than the IMF had anticipated, Rice said the world body will be reviewing its forecast for India, taking account of it and the recent global developments.

Print Rate this article:
No rating

Number of views (203)/Comments (0)

rajyashree guha

PTI

Other posts by PTI
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free