Economist

Richard Iley

Macroeconomics

June's record low CPI print of 1.59% y/y will further ratchet up the pressure on the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) to deliver a 25bp rate cut at its August 2nd Policy Review. Despite one MPC member dissenting at the last MPC meeting, the bar for any additional policy ease is high with the three RBI 'insiders' on the MPC chiming a decidedly hawkish note in the minutes from that meeting. Benign as the June CPI report is, it is no smoking gun for a rate cut…

June's record low CPI print of 1.59% y/y will further ratchet up the pressure on the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) to deliver a 25bp rate cut at its August 2nd Policy Review. Despite one MPC member dissenting at the last MPC meeting, the bar for any additional policy ease is high with the three RBI 'insiders' on the MPC chiming a decidedly hawkish note in the minutes from that meeting. Benign as the June CPI report is, it is no smoking gun for a rate cut…

RBI: Rate Cut Door Ajar