Photo: Aniruddha Chowdhury/MintMumbai/New Delhi: India’s monetary policy committee displayed its independent streak, flagging inflationary risks from an expansionary Union budget and shifting toward a more hawkish bent. “It seems like the RBI has finally got its mojo back. “Apart from the direct impact on inflation, fiscal slippage has broader macro-financial implications, notably on economy-wide costs of borrowing which have already started to rise. This may feed into inflation,” the RBI said in a statement. “With rates already having risen so much, so quickly, the RBI’s stance seems to have provided some respite for India government bonds,” said Eugene Leow, a fixed income strategist at DBS Group Holdings Ltd in Singapore.

Source: Mint February 08, 2018 03:56 UTC