....On the domestic front, inflationary headwinds have threatened to derail the India growth engine resulting in interest rates remain stubborn. To add to this, a worsening fiscal and current account deficit, negative systemic liquidity and most importantly volatility in commodity prices continue to worry the Reserve Bank of India and policy makers. While the Central Bank has indicated that interest rates may have peaked, it has also conveyed its concerns that inflationary pressures may resurface as the global economic scenario improves..........
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