The Indian economy slowed down to 4.5% in the fourth quarter of 2012, lower than the 5.3% recorded in the third quarter. Though the Consumer Price Index increased by 101 bps from 9.9% in November 2012 to 10.91% in February 2013, core inflation reduced further and reached a three-year low of 3.79% in February. HSBC Purchasing Managers’ Index maintained a range of 53.0-54.0%, an indication of improvement and expansion in the manufacturing economy. During the quarter, the Reserve Bank of India cut the Repo and Reverse Repo rates twice, and the Cash Reserve Ratio once by 25 bps each in its monetary review, bringing them down to 7.5%, 6.5% and 4%, respectively in order to thrust the sluggish economy towards a higher growth trajectory.
Source : Cushman & Wakefield