Inflation for week-ended Jan 24 at 5.07% vs 5.64% WoW, in last two weeks the inflation was showing marginally up tick.
Inflation for the week-ended November 29 has also been revised to 7.86% as against 8% (provisional).
Inflation for the week ended Jan 03-2009 has come at 5.24% form 5.91
Makets feels that government expected to cut the petro prices by this week end inflation may come to 0% by March 2009.
On inflation coming lower and expected cut in petrolem products the bond rose in today trade.Â
Punjab National Bank(PNB) has decided to raise its benchmark prime lending rate(PLR) by 100 basis points to 14 per cent with effect from 1st of next month, being country’s second largest public sector bank by assets PNB decided to hike its deposit rate by 75-100 basis oints across various maturities to make them more competitive in the market.
These decisions have been taken today looking at the extraordinar situation prevailing and to provide better returns to the depositors of PNB with the inflation rates at 12 per cent PNB said that they will not be able to induce the people to save unless they increase teh deposit rates.
1) Bank Rate kept unchanged at 6 percent.
2) The reverse repo rate and the repo rate unchanged at 6 percent and 7.75 percent, respectively
3) CRR kept unchanged at 7.5 percent.
4) GDP growth projection for 2007-08 is 8.5 percent.
5) The policy endeavour would be to contain inflation close to 5 percent in 2007-08 while conditionig expectations in the range of 4-4.5 percent.
6) Loan growth slows; but money supply and aggregate deposits continue to expand well above indicative projections