RBI Policy On Inflation

RBI acknowledges economy will contract in the current fiscal even as independent experts have already assessed so.

The six-member MPC also kept policy stance unchanged at 'accommodative' for "as long as necessary" to revive growth

GDP growth forecast for FY20 has been revised downwards from 6.1 per cent in the October policy to 5 per cent

Whilst the noise on feasibility of budget numbers and risks on sovereign borrowing would persist in the near term, the budget outcome has certainly eased the job for RBI MPC to ease rates further

The RBI has promised to be tough on inflation, but it has also been mindful of an economy that grew 7.2 percent in October-December

Two MPC members specifically warned that India may no longer be able to afford being accommodative on inflation