weather forecasts: Bond and stock traders in Mumbai have been left compulsively checking weather forecasts, according to Euro News. But in a bustling market in Aurangabad, 330 kilometres east of the financial capital, wholesaler Shaikh Sharif does not need to track the monsoon: he says prices will stay high no matter what the rains do. Reserve Bank of India Governor Raghuram Rajan has cut interest rates three times this year to boost growth, but he has since warned he will not cut again if poor rains drive up prices and threaten his inflation target. Standing in a storage room with sacks of produce stacked almost to the ceiling, the 42-year-old is stockpiling garlic and onions, saying unseasonal rainfalls earlier this year and a subsequent heatwave have already hit crops, and farmers won’t be able to immediately make up for the shortfall. If the monsoon fails, then there will be an even bigger rally in prices. Vegetable prices will rise despite good monsoon rains due to thin supplies, he said, as a book keeper nearby jots figures in a thick ledger.
(news.financializer.com). As
reported in the news.
Tagged under weather forecasts, monsoon topics.