You are here: Home » Opinion » Editorial » Editorials
Going beyond policy statement, RBI gives guidance
Value expertise
Business Standard

Monetary peace

RBI might have chosen to err on the side of caution

Topics
Rbi  |  Rbi Monetary Policy  |  Rbi Monetary Policy Review

Business Standard Editorial Comment 



The big news from Wednesday’s review is that the (RBI) now expects retail inflation to stay below the legally mandated 4 per cent mark for the coming 12 months. As a result, the has sharply cut its inflation forecast for the second half of the current fiscal year — from 3.9-4.5 per cent to 2.7-3.2 per cent. For the first half of the next financial year, it has been revised from around 4.8 per cent to 3.8-4.2 per cent. The appeared surprised at the sharp decline in retail inflation, which has significantly undershot its estimates since the October policy. The RBI’s own household survey of inflation expectations over the three-month horizon for November, too, has shown a 40 basis point downward movement over the last round. Retail inflation is expected to fall further — the November data, for example, is estimated at 3 per cent. In a big way, the dip in retail inflation is a result of the unexpected deflation in food items such as pulses, vegetables and sugar.

TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

SUBSCRIBE TO INSIGHTS

What you get on Business Standard Premium?

  • icon Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • icon Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • icon Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
  • icon Pick your 5 favourite companies, get a daily email with all news updates on them.
  • icon 26 years of website archives.
  • icon Preferential invites to Business Standard events.

OR


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Wed, December 05 2018. 21:39 IST

RECOMMENDED FOR YOU

.