Here come the rate cuts

Though consumer inflation getting back to double digits probably puts paid to hopes of a 50 bps rate cut on January 29, almost any indicator a central bank should look at is at a multi-year low. At 7.18%, WPI inflation in December is at a three-year low, the last time such an inflation was seen was in December 2009 when inflation was 7.15%; inflation in manufactured products fell to 5.04%, a level last seen in November 2010. Strip away food products within...

Read Full Story>>