With growth recovering and inflation rising, RBI’s outlook for the rest of the financial year will be closely watched. Photo: Aniruddha Chowdhury/MintMumbai: The Reserve Bank of India’s monetary policy committee (MPC) is likely to leave rates unchanged on Wednesday, given the concerns of rising inflation. Beyond the rate action, here are the three things to watch out for in the policy:Growth & inflation forecastWith growth recovering and inflation rising, RBI’s outlook for the rest of the financial year will be closely watched. The most recent inflation print in October saw headline retail inflation rising to 3.58%, the fastest pace in seven months, because of rising food and fuel prices. With CPI inflation expected to rise in the second half of the financial year, market expects RBI to sound hawkish in the bi-monthly policy statement.

Source: Mint December 06, 2017 03:00 UTC