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Comment on Inflation by Upasna Bhardwaj, Kotak Mahindra Bank
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Below is the Comment on Inflation by Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank
"The headline inflation came in softer than our expectations largely led by the downward surprise of food prices. We expect the subsequent readings to remain fairly benign and much lower than RBI estimates. The softer inflation would provide relief to the policymakers and more room to move much slower in terms of policy normalization. We continue to expect only tweaks to liquidity tools to manage temporary liquidity surplus in the near term."
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