Talks of Reserve Bank of India shifting back its policy stance to accommodative is gaining some ground even as not many are expecting the central bank to make policy rate softer immediately.
Expectation of a normal monsoon and the record-low inflation level may make the monetary policy makers comfortable while unexpected slowdown in economic growth would raise clamour for easier financing costs.
“Inflation have fallen into a virtuous cycle and are likely to stay there, anchoring India’s inflation rate at the 4% target, unless some of the ‘other factors’ turn sour enough to yank them out,” HSBC’s Chief India Economist Pranjul Bhandari said.
via reserve bank of india: Will RBI turn “accommodative” to push growth? – The Economic Times
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