Citing steep moderation in growth and expressing optimism that inflation will cool off from the next quarter, the RBI governor said the central bank would take into account the growth-inflation trajectory and calibrate monetary policy accordingly
Kolkata: Reserve Bank of India (RBI) Governor D Subbarao has hinted at easy monetary regime in the coming days, citing steep moderation in growth and expressing optimism that inflation will cool off from the next quarter, reports PTI.
"We are expecting that inflation will trend down starting the fourth quarter. As we go into our mid-quarter policy on 18th December and the quarterly policy on 29th January, we will take into account the growth-inflation trajectory and calibrate our monetary policy accordingly," he told reporters after the central board meeting of RBI.
He, however, said 7.5% inflation is still high, though it has come down from its peak.
He further said: "Growth has moderated certainly. Growth has come down from 8.5% and 6.5% in the last two years respectively to 5.5% and 5.3% (in the last two quarters)."
RBI is always trying to manage the balance between growth and inflation, he said, adding that fall in growth to 5.3% in the last quarter is a steep moderation.
The headline inflation was 7.45% in October.
After two revisions, the RBI had projected the year-end headline inflation at 7.5%. In the beginning of the year, it had pegged inflation at 6.5%.
At the last credit policy announcement on 30th October, RBI had left the key rates unchanged at 8%. Expressing disappointment, Indian Finance Minister P Chidambaram had said that if the government had to walk alone on the growth path it would do so.
In the October monetary policy review, Subbarao had also said that "there is a reasonable likelihood of further easing in the January-March quarter."
While growth has taken a massive beating, inflation is still much above the RBI's comfort level of 5%, despite 13 successive rate hikes between March 2010 and October 2011.
BSE has selected 14 investment bankers for its forthcoming IPO slated during the first half of 2013
Mumbai: Premier stock exchange BSE moved closer to its initial public offering (IPO) plan by selecting 14 investment banks, including Bank of America-Merrill Lynch, JP Morgan, Barclays and UBS, for a public issue that is slated to hit the markets in the first half of next year, reports PTI quoting a top official.
"Yes, we have selected 14 investment bankers for our forthcoming IPO slated for the first half of 2013," BSE Chief Executive and Managing Director Ashish Kumar Chauhan told PTI.
The other lead managers to the issue include domestic majors including Kotak Mahindra Capital, ICICI Securities, Edelweiss Capital, Axis Capital, and IIFL, Chauhan added.
The BSE, which had reported a net profit of Rs178 crore on a revenue of Rs578 crore last fiscal, will be second bourse to get listed after Multi Commodity Exchange of India (MCX) made its debut in March this year.
He did not divulge the details of the issue saying the investment bankers will decide on the pricing and issue size.
BSE is seeking an offering that would value it at about Rs4,000-Rs5,000 crore, sources close to the development said.
The BSE has opted for the public issue to give an exit route to existing shareholders, who hold over 41% stake in the exchange.
The IPO could fetch Rs800-Rs1,000 crore, they added.
At Rs5,000 crore, BSE's valuation would be at a 37% discount to MCX's current market capitalisation of Rs7,881 crore.
Late last month, in an interview to PTI Chauhan had said that the oldest Asian bourse, had appointed a committee to finalise the i-bankers.
The BSE had in October once again retained the No1 slot as the world's largest exchange in terms of number of companies listed last month.
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