RBI not to make rate cut, say experts
Posted on: 21/Oct/2017 11:43:54 AM
According to discussions during the Monetary Policy Committee (MPC) meeting, the RBI is set to take a cautious path, and hence the possibility of making rate cut is meagre. Thus, inflation is set to inch up, say reports. Apart from inflationary pressure, the MPC members are bothered about fiscal slippage and likeliness of volatility in global markets.
As inflation is likely to inch up, in the October MPC meeting, a cautious approach is reinstated, the report adds. During the second half of the fiscal year, there will be substantial growth and recover cyclically. However, low capacity utilization, stressed assets in the banking sector, etc. are some of the constraints that resist growth. In this fiscal, about 3.3 percent retail inflation is expected.
