As the RBI's Monetary Policy Committee's mandate is to target inflation, there is a possibility that we may be seeing another rate hike -- the third in a row.
Petrol prices on Monday hit a 4-year-high selling at Rs 73.83 per litre while diesel rates touched an all-time high of Rs 64.69 in the national capital
Slippage in the fiscal deficit has been adding to inflationary pressures. Credible fiscal consolidation, therefore, will be an important factor in shaping the inflation outlook.