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Below are Perspective on RBI Monetary Policy By Mr. Sanjay Kumar, CEO & MD, Elior India

The RBI maintained an accommodative stance that’s given the spike in inflation to nearly 5%. It is critical to watch how oil prices play out over the next few weeks. The high price of domestic fuel is one of the drivers of inflation while some of that inflationary pressure is being set off by the surplus food grain production it essentially then boils down to one wrong correcting another.

 This presents itself as a complex problem. While its good for the market, the oversupply of money could result in a sudden spike in inflation and a hike in interest rates making manufacturing exports uncompetitive....Indeed a tough road lies ahead 

 This is a rather bold step to continue maintaining the repo rate even though the inflation has touched a near peak over the last few quarters.
 

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