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A weak monsoon has compounded the problems for policymakers....

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A weak monsoon has compounded the problems for policymakers.... Empty A weak monsoon has compounded the problems for policymakers....

Post  RaahiShah Fri Jul 27, 2012 3:11 pm

Although the start will be bright for the Indian markets, the near-term prospects look bleak. A weak monsoon has compounded the problems for policymakers, especially the RBI. It is unlikely to lower rates on July 31 as inflation remains sticky, twin deficits are pretty high and the Government continues to dither on the policy front. ’

Draghi’s pledge to support the euro has fueled some speculation about fresh monetary easing by the ECB. However, history suggests that past measures by the eurozone policymakers to calm financial markets haven’t been successful. A couple of positive data helped US stocks counter a few disappointing earnings. European benchmarks galloped, led by Spain and Italy. Asian markets are up and about as well.

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RaahiShah

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