Retail inflation to be within RBI's 2-6% target: BofAML

Wholesale inflation rose sharply to 1.88% in July from 0.90% in June 2017

Retail inflation is likely to stay well within the RBI's 2-6 per cent mandate in the coming months and accordingly, the central bank is expected to cut policy rates by 25 bps on December 6, says a report.

According to Bank of America Merrill Lynch (BofAML), inflationary pressures are expected to remain contained by good rains, low growth and subdued imported inflation amid a decrease in global commodity prices.

The global brokerage firm said that after a pause in the October policy review meet, the Reserve Bank is expected to go for a 25 bps cut in key policy rates in its