Inflation to over-perform RBI forecast, opens up space for further rate cut: Eco Survey

Dovish trajectory to make space for central bank to cut rates

RBI's monetary response to inflation-illustration

Economic Survey 2014-15 has painted a dovish picture of the inflation trajectory in India, owing to benign crude oil prices. This scenario, it said, would give more room for the central bank to cut interest rates. Consumer Price Index (CPI)-based inflation, the yardstick used by the Reserve Bank of India (RBI) to gauge movement in prices, has fallen to about five per cent through the past few months from double-digit levels a year ago. Read our full coverage on Union Budget “The economy is likely to over-perform on RBI’s inflation target (six per cent by January ...