RBI's MPC left the key policies rates unchanged today, choosing to wait for uncertainty around the inflation prints to subside. With two quarters of average inflation being more than 6%, and near-term inflation expectation being elevated, some caution on the inflation front was warranted. Long-term structural benefits of adhering to the inflation-targeting framework needs to be protected.
RBI’s MPC left the key policy rates unchanged today, choosing to wait for uncertainty around the inflation prints to subside. With two quarters of average inflation being more than 6%, and near-term inflation expectation being elevated, some caution on the inflation front was warranted. Long-term structural benefits of adhering to the inflation-targeting framework needs to be protected.
