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Budget 2018 spurs inflation worries, may push RBI to increase rates

Traders and analysts said the Budget could add to inflationary pressures at a time when retail inflation was at a 17-month high

Reuters  |  New Delhi 

India's annual budget could push up inflation and prompt the central bank to raise interest rates sooner, analysts said on Thursday, raising the probability of a scenario that could hurt the nascent economic recovery. Finance Minister Arun Jaitley, delivering his last full annual budget before a general election to be held by May next year, raised government spending for rural areas and support to farmers, while slowing the pace of fiscal consolidation. Traders and analysts said those moves could add to inflationary pressures at a time when retail inflation was at a 17-month ...

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First Published: Fri, February 02 2018. 08:36 IST
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