Wednesday, May 15, 2013

With sticky inflation, RBI has to go carefully: Ashima Goyal

.............RBI has to go carefully because inflation has been sticky for so long. It is necessary to anchor inflation expectations. It is not so much about creating an output gap, already so large. In terms of declining WPI and core inflation, RBI has room for rate cuts. There is no excess demand but because of CPI and inflationary expectations, RBI has to be cautious.............

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