ECONOMIC ANALYSIS

RBI & INFLATION Pressure on RBI to cut rates to boost economic growth. Retail inflation in June rose to Eight month high 5.4 %, overall

price index inflation was 2.4% in the same month.

RBI mostly track consumer price based index, retail inflation for its monetary policy decisions.

•RBI cuts rates thrice during 2015 .75% reduction.

Last month RBI cut repo rate [short-term lending rate from 7.50 7.25]

•Other policy tools CRR unchanged [4%]•Statutory liquidity ratio at 21.5 %.

Inflation

May - 5.74%

April - 5.79%

March - 6.28%

February - 6.30%

January - 7.17%

BIG MONTH

When focus on February – 2015 the big month 3 major thing happened 1. Budget 2nd budget 2. Finance commission  

3. Interest rate Interest rate cuts begin 

ABOVE THE EARTH BELOW THE GROUND

Agriculture contribute enough income.

55% revenue go to the government worldwide from agriculture.