Wait and watch

Food prices will remain a risk for the MPC

The six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is meeting this week against a favourable economic backdrop. The official numbers released last week showed the Indian economy expanded by 7.6 per cent in the second quarter this financial year, compared to the MPC’s projection of 6.5 per cent, though RBI Governor Shaktikanta Das had said that growth would surprise on the upside. Nonetheless, the pace of expansion surprised most economists and has led to upward revisions in full-year forecasts. The MPC will also be expected to revise its forecast for the year from 6.5 per