India Monetary Policy: October 2017

Another concern for the RBI has been the jump in core inflation (inflation excluding food and fuel).

By

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.