India Monetary Policy: October 2017
Another concern for the RBI has been the jump in core inflation (inflation excluding food and fuel).
Overview:
- The RBI held the benchmark policy Repo rate at 6%. This was expected, in light of recent higher readings for headline and core inflation.
- NAB Economics is forecasting the RBI to remain on hold and maintain the Repo rate at 6%.
- At this juncture, supply-side measures are more likely to benefit the Indian economy than a cut in policy rates
For further details, please see the attached document.
About the Author
John Sharma is the Sovereign Risk Economist for the National Australia Bank, and is also entrusted with the coverage of India. John has been in the NAB Economics team since August 1999, and in the Sovereign Risk role since March 2013.
Prior to joining the Sovereign Risk area, John was in the Industry Economics team (with responsibilities for Property, Construction, Hospitality and Transport), followed by a role as the domestic Macro Economist, with responsibility for macroeconomic analysis and forecasting of the Australian Economy as well as in preparing the NAB Monthly, Quarterly and SME Business Surveys.
John has a first class Honours in Economics from Melbourne University and is a CFA Charterholder.
