The RBI could likely continue to ease rates on growth concerns, but policy action would greatly be dependent on inflation dynamics and changes in the CAD. There is a 70 percent chance of the RBI reducing interest rates by another 25 bps in the June review, if the WPI continues to register a downward trend, says CARE Research.
Mar Gudmundsson, the central bank governor of the Bank of Iceland, gives his views on what central bankers should concentrate on. Check out his comments.