......The monetary policy scenario has become significantly more complex as a result of the sharp rupee depreciation in a short period of time. This will slow, if not reverse, the downward trend in inflation over the next few months. Further, in the absence of a rapid increase in capital inflows - for which there are no obvious triggers, either external or domestic - the likelihood is that the rupee will continue to lose value, intensifying inflationary pressures even more.......
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