India's inflation eases further, but RBI should remain on hold

Today’s further fall in India's wholesale price inflation will come as a relief to policymakers. While the odds of a rate cut have now risen, we still think the Reserve Bank of India (RBI) will opt to stay on hold on 17th June. The central bank will want to see evidence of further declines in consumer price inflation and inflation expectations, as well as currency stability, before acting again. 

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