The RBI decided to increase the base rate in the country with a quarter point to 5.75 percent. This is the second increase in interest within one month, the goal of tightening monetary policy to combat inflation. Over the past five months the appreciation of life in India is two-digit, and in July is expected to increase producer prices by 11 percent annually, Air Force forward. With a major contribution to this rise in prices of food and fuel. Last year, India became a victim of the biggest floods for the past 37 years. This significantly reduce agricultural harvests and the prices went up, the agency adds. Against the backdrop of high inflation in India and the government expects strong economic growth of 8.5 per cent this year. Today it became clear that India will also begin conducting stress tests of the banking system. Unlike the U.S. and Europe, however, the Government plans to introduce a regularity and banks to be tested every six months.
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The crude oil prices fall account for a third day because of weak data on consumer confidence in the U.S. and alarming signs of economic growth in China. The U.S. consumer confidence in June dropped heavily to the level of 52.9 points in June, after a month earlier was 62.7 points. This prompted a sharp drop in U.S. stock exchange yesterday, as predictions were for much more limited decrease in the index. On the New York Stock Exchange yesterday, oil contracts with delivery in August fell by 3 percent to 75.94 dollars a barrel. This is the largest decline in raw material from June 4 onwards. The night continued retreat of the quotes this morning and they were 0.4 percent lower at 75.66 dollars a barrel. Thus, the raw material is directed to the first quarterly drop in prices from late 2008 onwards. From late March till now, oil has dropped by 9.4 per cent. Yesterday in London, Brent crude oil from the supply in August fell 2.8 percent to 75.44 dollars a barrel.
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The Gross domestic product (GDP) grew by 0.4 percent in the euro area (EU-16) and by 0.3% across the EU in the third quarter of 2009, said the community’s statistical office Eurostat. In the second quarter of 2009 growth was -0.2% in the euro area and -0.3% in the EU27. Compared with the third quarter of 2008, GDP declined by 4.1% in the Eurozone and 4.3% in the EU27, after -4.8% and -5.0% respectively for the previous quarter a year ago. In the third quarter of 2009, consumer spending fell by 0.2%, at 0% and -0.1% respectively for the previous quarter. Investments decreased by 0.4% in the eurozone and by 0.5% in the EU27 (-1.7% in reported and -2.5% the previous quarter). Exports increased by 2.9% in the Eurozone and 2.4% in the EU27 (-1.3% respectively at -1.4 percent and the previous three months). Imports increased by 2.6% in the eurozone and by 2.4% in the EU27 (in-2, respectively, 9% in both zones). To compare the U.S. GDP increased by 0.7% in the third quarter of 2009, after -0.2% in the second quarter of 2009.
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