'War of inflation is not over yet- Shaktikanta Das'

Our governor Mr. Shantikanta Das announced Repo rate to be unchanged at 6.5% after 6 rate hikes in monetary policy .He also emphasised on the fact that fight against the inflation is not over yet, as projection for Consumer price inflation remains to 5.2% for fourth quarter.

Core inflation is still high and no one is in the illusion that it will fall soon.This means that India does not want to participate in the rate hike game, at the moment.Though in India's case its 250bps in last 11 months growth concerns are abound to as we wait for lagged effect of cumulative rate hike to show up.

Falling commodity prices and moderation in households( food inflation ) might lead to softening overall inflation number from 5.3% of CPI to 5.2% of CPI for FY 23-24(expected) whereas current inflation being 6.2%

However,The RBI cautioned factors like unseasonal rains and supply cuts by OPEC could pose some challenges for commodity prices.

Finally, there is some comfort in India's external sector outlook with Forex reserve rebounding and the current account deficit projected at decent levels.

Overall, RBI's stance and projections seems to be the course as of now.Rate hike can be triggered if, decisions doesn't get fructified as desired.