If exit polls are proved wrong and the NDA fails to get a majority, uncertainty on the economic front is bound to increase.
It is not clear how and when exactly will growth recover to 7.5-8 percent level in a sustainable way.
Wholesale inflation was 3.62% for the same period a year ago.
Aside from food inflation, there are other structural issues that can affect inflation outcomes in near to medium term.
Customised human-machine collaborations are perhaps the only answer for serving the wealth management needs of a large population that lives and thrives in India’s numerous towns and villages.
It is important to note that the core inflation is still above the 5 percent mark and a significant demand boost would have pushed it up further.
The durability of the increase in crude oil prices is of interest, as it has deep implications for CAD, currency, inflation, monetary policy, and the Budget.
Financial conditions in international markets are more accommodative than in 2018.
Sakshi Batra chats with Moneycontrol's Deputy Executive Editor, Gaurav Choudhary to find out if the cause of these concerns of the MPC.
Sustained higher core inflation and a revival in food inflation could curtail the ability of the central bank to cut rates.
‘Make in India’ has been a very damp squib
Despite the continuance of low inflation and deceleration in growth, upsides to inflation cannot be ignored, especially if the monsoon does not turn out to be normal.
A higher and unsustainable level of fiscal deficit will create financial stability risks and may end up destroying existing jobs.
As long as the public sector continues to soak up 8-9 percent of GDP as funding, bond yields will continue to remain elevated.
"The BOJ isn't seeking to push up inflation alone. We want to create a situation where wage and employment conditions improve too ... and a positive economic cycle is created," Kuroda told parliament.
New Zealand government has broadened the goals of the central bank and added employment to the inflation targeting mandate in 2018.
For a smoother transmission of policy rates in the economy at this point, liquidity is the key.
While the market did anticipate the move unlike the last policy action, however, what caught the eye was a much more bearish outlook by the central bank for FY20.
Any further rate easing is conditioned on the possible sustenance of current global slowdown.
On balance, it can be argued that this is not the end of the easing cycle. However, the market will be more interested to see if the cuts actually get transmitted into the system.
In the second half of FY20, the committee projected inflation level at 3.5-3.8 percent
With RBI committed to injecting required liquidity in the system, short-term rates are expected to ease in line with expected rate cuts.
Vaibhavi Khanwalkar gets in conversation with Moneycontrol's Deputy Executive Editor, Ravi Krishnan to find out if a rate cut is to be expected in the near future.
We expect domestic growth impulses could remain soft at least for the next two quarters
It would inject liquidity in the banking system, reduce the statutory cost of deposits for banks and help them reduce lending rates