Over to the govt

RBI cuts rate, but unsure about inflation trajectory

In its third bi-monthly review of monetary policy for 2017-18, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) did precisely what was widely expected and cut the policy rate by 25 basis points. The MPC’s statement, released on Wednesday, said that the decision was in keeping with a neutral monetary policy stance — a stance which the committee declined to change. The general impression conveyed by the MPC’s statement was that the committee felt that lower-than-expected prints for inflation and a stuttering economy had essentially forced its hand. The upside threats to inflation continued to be