RBI Monetary Policy Meet: In the list of bringing economic growth back on a fast track, the budget has already ticked the box of pushing demand by changing the income tax slab, hoping for an increase in consumption levels as disposable income rises. Now, it's RBI's turn.
D-street analysts are pinning their hope on a 25 bps (basis point) rate cut after subdued quarterly performance weighed heavily on investor sentiment. The pressure of reviving the business cycle now largely lies in the hands of the central bank, and the timing seems just right. India's retail inflation dropped to a 4-month low of 5.22% in December month, thanks to easing food inflation which stood at 8.39%. Core inflation, on the other hand, stood at a mere 3.6%.