India's Inflation Trajectory and Central Bank Decisions Dominate This Week's Economic Calendar
This week will be marked by several key economic data releases and announcements in India and abroad. On September 14, India's inflation trajectory for August will be revealed, with both consumer price index (CPI) and wholesale price index (WPI) figures due to be released. The Reserve Bank of India is also set to conduct open-market bond sales worth Rs.1 trillion this week as the banking system grapples with a large liquidity surplus following heavy foreign-currency inflows.
The August inflation data will show whether higher food and fuel costs are spreading to a wider set of prices, with analysts expecting weak and uneven rainfall and higher fuel prices to keep food prices under pressure. The US Federal Reserve, Bank of England, and Bank of Japan will also take monetary-policy decisions this week, with the Fed facing higher oil prices and inflation still above target at 3.4% in August.
The National Stock Exchange Ltd (NSE) will open its highly anticipated initial public offering (IPO) for subscription on September 17, alongside issues from other companies. The RBI's open-market bond sales will absorb some of the surplus liquidity, but could also put upward pressure on bond yields as more government securities enter the market.