RBI may take dovish stance in February policy on soft retail, WPI inflation

With softer retail and wholesale price-based inflation, Reserve Bank of India is likely to change its policy stance from 'neutral' from 'calibrated tightening' in the February policy, says a report.

The inflation based on the Consumer Price Index (CPI) eased to an 18-month low of 2.19 per cent in December compared to 2.33 per cent in November and 5.21 per cent in December 2017.

The Wholesale Price Index (WPI)-based inflation also eased to a eigth-month low of 3.80 per cent in December 2018, as against 4.64 per cent in November 2018, and 3.58 per cent in December 2017.

This is the fifth consecutive