Economist

Richard Iley

Macroeconomics

<div class="content-highlight"><p><strong>The RBI's six-berth MPC kept the policy rate unchanged at 6% as widely expected with the 'dove', Dr. Dholakia, voting for a 25bp rate cut. The main 'news' today was the evolution of the apex bank's GDP and CPI forecasts. Although FY18 GDP forecast was marked down by 60bp, the MPC's modal CPI forecast for FY18 H2 was nonetheless pushed higher by 20bp with risks still skewed to the upside. With the latest data signalling that the economy is showing welcome signs re-gaining momentum and inflation</strong>…</p></div>

The RBI's six-berth MPC kept the policy rate unchanged at 6% as widely expected with the 'dove', Dr. Dholakia, voting for a 25bp rate cut. The main 'news' today was the evolution of the apex bank's GDP and CPI forecasts. Although FY18 GDP forecast was marked down by 60bp, the MPC's modal CPI forecast for FY18 H2 was nonetheless pushed higher by 20bp with risks still skewed to the upside. With the latest data signalling that the economy is showing welcome signs re-gaining momentum and inflation…

RBI: Holding Pattern