INSUBCONTINENT EXCLUSIVE:
Policy Committee meeting due in August.The third consecutive rate cut announced in June was the first time since 2013 amid a widespread
slowdown in the economy.The brokerage firm listed three significant reasons for a rate cut: CPI inflation was well below the RBI's target of
4 per cent, RBI's accommodative stance and clear evidence of a slowdown in the economy."Despite firming up, June CPI inflation remains well
below the RBI target of 4 per cent
Even though food inflation is gradually rising, moderate core inflation is expected to keep a check on the headline number," the report
said."Government's adherence to fiscal prudence and MPC's acknowledgment of the fading growth impulses strengthen our belief of another 25
Further cuts would hinge on the growth-inflation mix," said the report.Kotak also said that the actual impact on inflation, will depend on
envisage a sharp pickup in food inflation
After a slow start in June, the sowing activity is expected to pick up in July and August with the advancement of the monsoon," Kotak
said.Core inflation broadly remained unchanged at 4.1 per cent in June
On a sequential basis, too, it remained flat and the Index of industrial production (IIP) growth softened to 3.1 per cent in May owing to a
unfavourable base effect.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
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