Run-up to MPC meeting: 'Time not ripe to signal monetary policy reversal'

Domestically, growth, especially in non-agricultural segments, is holding firm amid improved macro-financial stability

Both the global and domestic economic backdrops suggest that a pivot to domestic monetary policy easing will not come soon.

Globally, measures of consumer and business confidence are rising. Global economy, especially the United States, has shown greater resilience than expected, which means there is less possibility of a further rapid reduction in inflation. The annual American inflation at 3.4 per cent is miles away from the Federal Reserve (Fed)’s 2.0 per cent target and there is no guarantee the target will be achieved soon. Market participants now expect the Fed to lead major central banks (except Bank of Japan), to