INDIAN CENTRAL BANK SAID THAT WIDENING CURRENT ACCOUNT DEFICIT, ON THE BACK OF WORSENING TRADE DEFICIT, HAS EMERGED AS A MAJOR CONSTRAINT IN EASING MONETARY POLICY.
INDIAN POLICYMAKERS SHOULD TAKE PRUDENT STEPS TO CONTAIN THE CURRENT ACCOUNT AND THE FISCAL DEFICIT TO MAKE ROOM FOR MONETARY EASING, RESERVE BANK OF INDIA
THE FEDERAL RESERVE'S ULTRA-LOOSE MONETARY POLICY IS A ROOT CAUSE OF THE "CURRENCY WARS" THAT SOME SEE AS A LOOMING THREAT TO THE WORLD ECONOMY, BUT DON 'T EXPECT THE U.S. CENTRAL BANK TO SIGNAL A SHIFT BACK TO NORMAL ANY TIME SOON.
THE FEDERAL RESERVE HAS LEFT LITTLE DOUBT ABOUT ITS PLANS FOR THE NEXT FEW MONTHS, AND THUS LITTLE MYSTERY ABOUT THE STATEMENT IT WILL RELEASE WEDNESDAY AFTER THE LATEST MEETING OF ITS POLICY-MAKING COMMITTEE. THE ECONOMY REMAINS WEAK. THE FED WILL KEEP BUYING BONDS TO HOLD DOWN BORROWING COSTS.
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