Deloitte’s Chakravarty Says India Will Pause Rate Increases
Anis Chakravarty, an economist at Deloitte Touche Tohmatsu India Pvt., comments on India’s inflation rate. The wholesale-price index rose 9.78 percent in August from a year earlier after a 9.22 percent jump in July, the government said today. The median of 25 estimates in a Bloomberg News survey was for a 9.64 percent increase.
Chakravarty spoke in a phone interview.
“We are seeing inflation at over 9 percent this year and the interest rate increases have not managed to dent that. So, this is the time the central bank may consider pausing and see if there are structural changes that need to be made to address the issue.
‘‘There is a concern from the government and industry that industrial growth is being hampered because of the rate hikes. It is now time for the policy makers to discuss if there are any other measures by which the inflation issue can be tackled.
‘‘There are different ways in which inflation can be tackled. Some developed countries have been able to bring down inflation to manageable levels using long-term methods, which do not focus only on rates.
‘‘I believe the central bank will pause on rates on Sept. 16.’’
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