What is the point of view on inflation? Do you think it will be gentle? IMD has already predicted a normal monsoon, so I believe that food inflation should take some care.
Sub -Subs: Yes, that’s right. Therefore, the inflation again remains very gentle. We have seen the data surprising on the loss on this calendar year, if you look at the average of 6.6%. In the past year, good monsoon rains have rapidly reduced food inflation, which has helped improve crop production for both summer and winter crops and is likely to continue for this year as well as you have properly pointed out that IMD is again predicting above normal monsoon, so it is good for crop production.
Even at the same time, there are no big side risks that we can see or worry about and therefore the overall trend for inflation remains benign.
We will look at the numbers in this range of about 3-3.5% for the next few months, so the calendar year 25 is very decisively below 4%. And if you want to see a balance of risks and probably reduce the risks for the inflation point of view, and you are in the period of beautiful gentle inflation reading at least in a few months.
Given how both domestic as well as external factors are playing, do you think a policy response will be?
Sub -Subs: Therefore, given the data behind domestic growth and inflation, we think it will be crucial on the easy side. We have already seen the RBI taking those steps, a change in trend, two rates have already come. The RBI has added many sustainable liquidity to the system and will continue. Therefore, there is a gentle left from the inflation point of view, as I have said that you will look at the closest reading to say 3-3. % In the next few months and if you look like an inflation forecast for one year, it will still be close to 4%.
Therefore, the RBI will be comfortable that inflation properly adjusts with 4%of its medium-term target, which will give the RBI a low rate and view for growth. Yes, the rear data has been stronger than expected in the March quarter.
When you take a look at the point of view, you have to consider that the external environment is not so strong and there is a cloudy with uncertainty and, therefore, other matrix of domestic growth such as credit demand has weakened over the past few months and, in this atmosphere of global development, the domestic growth will improve, but the still is likely to improve.
Therefore, we expect to reduce two more rates, one will be this weekend because the RBI is available for monetary policy and the next August should be in the gust and we think the overall rate, liquidity and regulatory side should simplify the bias.
So, are you re -working your growth forecast? You think we will close the year?
Sub -Subs: Therefore, there is no change in our growth forecasts right now. We expect that the average financial growth will be 6.2% on an average basis. Therefore, we are a little cautious on the point of view or on the way we are looking at the outcome of external demand slow and on the way to India’s growth.
But, by saying, India is ready to post.
Therefore, the story of India on a related basis looks very good and macro management is just improving the mobility and its foundations.
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