Leading Global Economies:
- The inflation rate in Australia was recorded at 1.30% 2015 Q1, the slowest annual pace since 2012 Q2, mainly due to a further decline in cost of transport, communication and consumables.
- Japan reported a trade surplus of ¥229.26 billion in March of 2015, swinging from ¥1450.73 billion deficit a year earlier and beating market forecasts. It is the first surplus since June 2012, as exports rose while imports dropped.
- The People’s Bank of China cut the benchmark one-year lending rate by 25 basis points to 5.35 percent effective from March. It is now down 0.65 since November when the rates were at 6%.
- US inflation rate for consumers was recorded at -0.10% in March, its' lowest rate since late 2009, due to lower energy costs. This was also the rate seen in the Euro Zone and also France. This rate was also the lowest among the G20 nations.
- The consumer inflation rate in Russia was recorded at 16.90% percent in March. The inflation rate has been rising since 2014 start with ruble depreciation leading to a rise in import prices, but has slowed in the last two months. Among the G20 nations, this was the highest rate.
- The Chinese economy expanded 7.0% in the 2015 Q1, down from a 7.3% in 2014 Q4. It is the lowest growth rate since the March quarter of 2009, due to a slowdown in manufacturing and property investment.
- Consumer prices in Brazil rose 8.13% in March as energy cost surged after the government introduced higher taxes and fees. It is the highest rate in 12 years since December of 2003 when it reached 9.3%.
Indian Economy:
- India’s GDP growth is expected to strengthen from 7.2% in 2014 to 7.5% in 2015 and 2016, according to IMF. The growth will benefit from recent policy reforms, a consequent pickup in investment and lower oil prices.
- The RBI left its benchmark repo rate on hold at 7.5% in April, following a surprise rate cut in March. Policymakers said that the wait is to allow the disinflationary momentum to spread in the economy and for banks to cut lending rates.
- World Bank expects India’s GDP to accelerate to 7.2% 2014-15, 7.6% in 2015-16, 7.9% in 2016-17 to reach 8% 2017-18. Investments to grow at an average of 12% during 2015-17
- India's CPI, indicating retail inflation, declined to 5.2% in March 2015 from 5.4% in February. The fall was led by the food group, which was at only 6.1% in March 2015 as compared to 6.9% in February. A year ago, CPI was over 8% with food inflation in range of 8-9%.
- Inflation at wholesale level (WPI) measured (-) 2.3% in March 2015 - a negative for the fifth consecutive month, as petrol prices declined while food cost slowed. The figure came far below market forecasts and is the deepest decline since November of 1976.
- Foreign investment inflows to India shot up 272% to USD 70.45 billion during 2014-15 from just USD 18.94 billion last year for April to February period. Net portfolio investments was USD 38.92 billion as against USD 0.39 billion last year while Net FDI inflows rose by 62.3% to USD 31.54 billion during same period.