.........Liquidity injections from the Fed and other major central banks have in the past pushed global commodity prices higher and resulted in rising inflation in emerging markets. That could pose a complication for the Reserve Bank of India which, although determined to fight inflation, may find the task difficult. “The RBI has limited room for policy rate cuts given the persistence of inflation, although further progress on fiscal consolidation and structural reforms may eventually pave the way for some easing,” .........
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