“Strong economic growth will lead to higher inflationary pressures leading to more rate increases in 2006. The central bank may be looking for time before resuming tightening yet again.”
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“The number is much stronger than expected. It bodes well for the economy, and the growth momentum is getting reflected in the capital market.”
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“Growth momentum remains strong and that should lead to higher inflation and interest rates.”
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“Industrial output was way ahead of expectations on the back of a strong recovery in manufacturing sector output.”
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“Current account targeting or inflation becomes the objective. You will have a framework to ensure that the extra money that comes in doesnt lead to change in competitiveness.”
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“The rapid growth in loans and prices of assets such as real estate and stocks is a concern. The central bank may raise interest rates. Its better to err on the side of caution.”
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