Analysts expect this improvement in the macro numbers to provide room to the Reserve Bank of India (RBI) to further cut key policy rates later in the year, though they rule out one at the upcoming 4 October monetary policy review. Retail inflation recorded a 22-month high of 6.07% in July spurred by higher food prices. Ltd wrote in a note dated 8 September that a good set of macroeconomic numbers is expected in the next few days. To be sure, in its monetary policy review last month, RBI warned about upward price pressures on inflation. While it acknowledged that a good monsoon after two consecutive drought years and better supply side management could see food inflation moderating, it flagged pressures on the non-food, non-fuel inflation outlook.

Source: Mint September 11, 2016 18:11 UTC