Comment on RBI Monetary Policy - Upasna Bhardwaj, Sr. Economist, Kotak Mahindra Bank
Views on monetary policy announcement by Upasna Bhardwaj
"RBI's policy was in line with expectations, maintaining a word of caution on the upside risks emanating from high commodity prices, global financial instability, HRA related increases, rising input costs and fiscal slippages. RBI's 2H inflation has been revised marginally higher by 10bps to 4.3-4.7% even as they retained the GVA forecast of 6.7% as against our expectation of 6.5%. Given that MPC members are fixated with anchoring 4% inflation target and the upside risks emanating from higher oil prices, higher rural real wages, sticky core inflation and mean reversion of food prices, we find limited room for any further monetary accommodation this year."