Fresh setbacks set the stage for RBI action

.....While many economists said that the current high inflationary scenario did not warrant a rate cut by RBI, they maintain that the absence of credible fiscal and policy measures could still force the hand of the central bank. Finance minister Pranab Mukherjee said he is confident that the range of inflation will be 6.5-7.5% throughout the year. “I hope if (the) monsoon is quite good, then it would be possible that this type of pressures would be sorted out,” he added.....

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