Record trade gap may force govt action: Credit Suisse
Reuters Market Eye - Credit Suisse says October trade deficit of $21 billion is India's worst on record and may prompt the government to impose measures to curb the deficit such as a further increase in import duties of gold.
Although seasonal factors typically narrow the trade deficit in November and December, Credit Suisse expects a gap of at least $15 billion in the last month of the year, the bank said in an email to clients.
Credit Suisse adds RBI is "unlikely to take too kindly to the record trade deficit."
October wholesale price index is due on Wednesday, with a Reuters poll of analysts expecting headline inflation to have accelerated 7.96 percent.
That would be well above the RBI's baseline scenario of WPI at 7.5 percent by March 2013 to justify potential rate cuts in the January-March quarter.
- Tweet this
- Share this
- Digg this
- São Paulo running out of water as rain-making Amazon vanishes
- Maker of U.S. highway guardrails stops shipments over safety concerns
- Woman isolated in NJ under Ebola rules tests negative
- Iran hangs woman convicted of killing alleged rapist
- Reuters Poll - India's growth pace to pick up as reforms draw investment
Euro zone risks "relapse into recession" without structural reforms - Draghi. Full Article
Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw” Full Article