Reflecting a higher risk to future inflation, RBI has already upped its inflation forecast to 4.2-4.6% for the remainder of FY18 (from an earlier range of 4-4.5%). Photo: BloombergAs the Reserve Bank of India (RBI) goes into the last policy meeting of 2017, it is imperative to draw on the discussions of the Monetary Policy Committee (MPC) at its last meeting. This was a reason why the majority of MPC members voted to keep the policy rate unchanged, given the objective of RBI to keep the target of 4% inflation within “striking distance”. Reflecting a higher risk to future inflation, RBI has already upped its inflation forecast to 4.2-4.6% for the remainder of FY18 (from an earlier range of 4-4.5%). The verdict: RBI will keep its finger on the pause button not only in December but till March 2018.

Source: Mint November 28, 2017 19:52 UTC