Another source of RBI discomfort is that core inflation, which excludes food and energy prices, has remained stubbornly high at around 4.5%. In August, the RBI made its only cut in 2017, of 25 basis points, and in October, it held. On Wednesday, after a two-day meeting, the RBI is likely to reiterate concern about inflation, as the annual rate increased to 3.58% in October. Another source of RBI discomfort is that core inflation, which excludes food and energy prices, has remained stubbornly high at around 4.5%. While analysts rule out a cut now, some say the central bank could soften its tone somewhat and sound more accommodative.

Source: Mint December 05, 2017 06:22 UTC