Why inflation drop may not trigger a rate cut
Jan 13, 07:01

The Consumer Price Index-based inflation (CPI) or retail inflation for December was 4.59 percent, down from 6.93 percent in November, surprising analysts and economists. This was also well within the RBI Monetary Policy Committee's (MPC) target range of 2 to 6 percent. Does that mean the central bank, which has long been fixated on price movements, will reduce key interest rates? No, according to most economists. The MPC is likely to keep rates on hold in the near term and would prefer to watch the incoming data, they say. Food prices could rise again while growing consumer demand and rising input costs in manufacturing could still give the central bank an inflation headache soon.

CPI Inflation rate