Low core inflation is a comfort, uncertainty on food inflation remains a worry

Mumbai, Apr 05: Experts feel that low core inflation provides comfort, the uncertainty on food inflation remains a worry. They also feel that RBI is evenly balancing the two divergent objectives of growth and inflation

Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank said, "The MPC on expected lines maintained status quo on rates and stance. While low core inflation provides comfort, the uncertainty on food inflation remains a worry. Further, the higher US yields, higher oil prices and other commodities along with possible delay in Fed’s rate easing cycle will keep the MPC wary.”

Accordingly, we do not see much scope for any rate easing until Q2FY25. Earliest possibility of rate easing can emerge in Q3FY25.

Anu Aggarwal, President & Head Corporate Banking, Kotak Mahindra Bank said, "The monetary policy stance announced today reflects that the RBI is evenly balancing the two divergent objectives of growth and inflation”.

It seems a case of full commitment to growth with even higher commitment to inflation targets. I hope we will see sustained growth and softened inflation