RBI likely to hit pause button on April 1
The RBI is likely to hit the pause button in its next monetary policy review on April 1 as inflation is expected to peak and FY15 GDP is likely to be around 4.7% despite a target of 6% in the second quarter.
Inflation is persistent despite a low output gap, possibly due to elevated and sticky inflation expectations.
To adress the elevated levels of inflation expectations, RBI should not wait for stability in the political situations to emerge. As far as growth is concerned global growth is showing signs of improvement in 2014 even though there are riskof outlook
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