Last 18 months have observed frequent increase in interest rates of the Central Bank of India, under the spell of a move carried out in order to regulate inflation although, the campaign seems to stimulate an environment for slower growth.

In a released statement, the Commerce Ministry notified that the food inflation rate is continuously growing and has exceeded beyond 9%, almost for the third straight week. Meanwhile, the index, estimating wholesale prices of agricultural yields, was observed to gain 9.32% during last week ended on October 1. The fluctuation has clearly depicted a huge swing as compared to previous year figures with a hike of 9.41%.

On the other hand, the Governor of the central bank Duvvuri Subbarao emphasized on the need of measures to offer relief, even before reducing interest rates while hailing for maximum possible supplies yesterday. Simultaneously, the weather office notified 1% surplus annual monsoon rainfall between June-September, which is believed to be a major source for supplying water to crops.

While commenting on the existing market scenario, a Mumbai-based economist at Crisil Ltd, Dharmakirti Joshi said: “There is no doubt an inflation still remains a concern”. Further, the expert is seeking for a stimulated repurchase rate and hopes that the central bank for its boost, around 8.5% during the upcoming policy decision, scheduled to be held on October 25.

Meanwhile, the BSE India Sensitive Index jumped by 0.2%.