Below is Perspective on RBI MPC announcement By Mr. Nish Bhatt, Founder & CEO, Millwood Kane International.

“ It's a double whammy of sorts on the economic data. On a downward slide since April, the CPI rose in August to touch a 7% level. Primarily the rise is due to food, vegetable, and pulses that has led to a rise in CPI. Higher energy prices also pushed inflation higher.

The industrial production data too had a negative reading. After double-digit growth in May and June, the July industrial output has to 2.4% making it a 4-month low. Higher crude, LPG, and commodity prices dragged the industrial output. The falling crude and commodity prices may offer a respite for the CPI as well as IIP data going forward. This latest economic data will have a bearing on the MPC meet later this month. Central banks across the globe are raising rates, and curtailing system liquidity to tame the rising inflati.”

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