Inflation is likely to have edged down in February as food price pressures have shown signs of abating. The chances of there being perhaps one more rate cut in the near term have risen, but this is because the FY16/17 budget adopted a tighter fiscal stance than expected rather than any change in the outlook for inflation. The RBI still faces a difficult task in meeting its medium-term inflation targets.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.