Reserve Bank of India (RBI) Deputy Governor Shyamala Gopinath today, 10 February 2009, said the government and the Reserve Bank will keep all options open for borrowing funds from the market. Late last week, the RBI governor D Subbarao said the central bank will manage the government's borrowing programme smoothly. His comments had send bond prices surging.
However, the bond prices have plunged more than a percentage point so far in 2009 as the government borrowed more than budgeted for the fiscal year ending 31 March 2009 to pump prime the economy. Gopinath is meeting finance ministry official today to decide if the government needs to borrow more to fund its rising expenses after two rounds of stimulus for the economy.
Global rating agency Fitch Ratings on Monday affirmed India's ratings on Monday but kept its negative outlook on the local currency rating, saying public finances will deteriorate due to a weakening economy and government stimulus measures
The Central Statistical Organisation (CSO) on Monday, 9 February 2009, pegged India's projected GDP growth for the year ending March 2009 at 7.1%, the slowest in six years and below the previous year's 9%.
0 comments:
Post a Comment