Are inflation data, commodity prices enough to push RBI to cut rates?
Recent inflation data reveals that economic growth of the country has slowed down considerably, atop which, a steep fall in prices of gold and crude oil appears to be a fair push for the Reserve Bank of India to cut key rates. Although, the RBI has implied in March that headroom for further rate cuts is limited, all eyes now remain on one question alone- will the apex bank will go ahead with a rate cut in its policy review in May? Experts, Viney Kumar, executive director of IDBI Bank; Ajay Mahajan, managing partner with R-Square Advisors; Jay Shankar, independent economist and political strategist, and Arbind Prasad, director general of FICCI, explain the current situation given the cautioning inflation data and weak commodity prices.
