“In economies where such overheating pressures remain high, inflation remains above target and inflation expectations have continued to rise, such as in China, India, and Korea, the current pace of monetary tightening remains appropriate,” the IMF said in its Regional Economic Outlook for the Asia-Pacific
Washington: Ahead of the credit policy review meeting of the Reserve Bank of India (RBI) later this month, the International Monetary Fund (IMF) has supported the RBI’s monetary tightening strategy for taming inflation, reports PTI.
“In economies where such overheating pressures remain high, inflation remains above target and inflation expectations have continued to rise, such as in China, India, and Korea, the current pace of monetary tightening remains appropriate,” the IMF said in its Regional Economic Outlook for the Asia-Pacific.
The RBI has already hiked interest rates 12 times since March 2010 to control inflation, which is currently hovering near the double-digit mark.
With the rise in key interest rates by 350 basis points over the past 20 months resulting in a slowdown in industrial output, there has been a widespread demand for a pause in the rate hikes. The RBI is slated to conduct its second quarter policy review on 25th October.
“Inflation has been driven by commodity prices, but also in many economies by sustained demand pressures,” the IMF said.
It said that commodity price rise has fed to generalised inflation in countries like the Hong Kong special administrative region, India, Indonesia, Korea, Malaysia and Thailand.
“Inflation expectations have also risen since the first quarter of 2011 in a number of economies,” it said.
The report further said that Asian economies are facing a rising risk to growth on account of increased financial worries in the euro area and the growth slowdown in the US.
The multilateral lending agency projected that gross domestic product (GDP) growth across Asia would average 6.25% in 2011.
“Asia remains vulnerable to further trade and financial shocks given its high degree of integration,” the IMF said, adding that the risks for Asia are decidedly tilted to the downside.
“In addition to a drop in global demand for Asian exports, foreign investors could retrench from the region, reversing their large positions. European banks could reduce cross-border lending, causing credit flows to dry up,” the IMF said.
In the World Economic Outlook report released last month, the IMF projected that India’s economic growth rate would moderate to 7.5%-7.75% this fiscal from 8.5% in 2010-11 on account of slowing investment and the sluggish global recovery.
IDBI Bank has waived the processing fee for loan amounts upto Rs25 lakh. The bank has also reduced the existing floating home loan rates by 25–50 bps
IDBI Bank reviewed its home loan rates in view of market scenario, competition offerings and providing some benefits during festival season. All new borrowers would be given an option of either fully floating rate or a combination of fixed and floating rates. The processing fee for loan amounts up to Rs25 lakh has been waived. The Bank has also reduced the existing floating home loan rates by 25–50 bps. The composite fixed floating home loan scheme and revised floating rates home loan scheme are as under:
“Hyundai Eon has been specifically built keeping in mind the varied Indian conditions and special requirements of the customers” Hyundai CEO
Korean auto major Hyundai Motor Co today launched entry level compact car Eon that has been developed specifically for the Indian market, at an introductory price of between Rs2.69 lakh and Rs3.71 lakh (ex-showroom Delhi).
The company, which operates through wholly owned subsidiary Hyundai Motor India Ltd (HMIL), said the car has been designed and developed keeping Indian consumers in mind.
"Eon has been specifically built keeping in mind the varied Indian conditions and special requirements of the customers here. It will further expand our market share in the fast-growing small car segment in the Indian market," HMIL managing director and CEO HW Park said.
The Eon, which will compete with Maruti Suzuki India's best selling model Alto, is powered by a 814 cc petrol engine. Alto is priced between Rs2.32 lakh and Rs3.17 lakh (ex-showroom Delhi) and is the best selling car, averaging about 20,000 units a month.
HMIL has invested Rs900 crore on the development and production facilities for the Eon. HMIL senior director marketing and sales, Arvind Saxena, said the company has plans to produce up to 1,50,000 units of the Eon on a 12 month basis.
Asked about export plans, Park said: "Later on we may consider exporting the Eon to markets in South America and South Africa but the present focus is on the Indian market."