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. RBI expects inflation to be in the range of 4.2-4.6% in the second half of the current fiscal year. “In addition, concerns over the inflationary impact of high oil prices, bank recapitalization, and fiscal slippage risks will also leave the RBI wary of lowering rates further. However, most economists don’t expect the RBI to raise rates in this meeting as a precautionary measure because it could hamper the ongoing economic recovery. Economists expect RBI to acknowledge the recovery.

Source: Mint December 03, 2017 18:45 UTC