RBI will perhaps take 2-3 months to ease rates and rollback measures. Taimur Baig, India Economist, Deutsche Bank sees the rupee at 65 per USD for end of the year. The appreciation related volatility has been extraordinary, so rupee is still not out of the woods.
Deutsche Bank's Taimur Baig believes the RBI does not want to destabilise growth sentiments at the expense of stabilising rupee due to which there may not be much movement in policy rates in the short-term.
Deutsche Bank's Taimur Baig believes the fight on inflation has gone on for a long time and whatever upside risk we see on inflation right now would be temporary
Taimur Baig expects productivity to pick up in the second half and FY14 may close with a 6 percent GDP growth. He feels weak data and declining inflation will force RBI to cut rates in June, July and September monetary policies