Volatility in monthly CPI inflation gives cautious bias to monetary policy

With inflation rising from the temporary lows seen in mid-2017, the Monetary Policy Committee (MPC) stayed on hold in the recent Policy review, as was expected. Moreover, the Indian economy charted a moderate sequential recovery in growth in Q2 FY2018, relative to the destocking-hit Q1 FY2018.This uptrend is expected to continue in the remainder of FY2018. However, a sustainable investment recove...