Deciphering Raghuram Rajan’s next move
The decision to cut administered rates will improve monetary transmission but not alter inflation trajectory
All eyes are on Reserve Bank of India (RBI) governor Raghuram Rajan as he gears up for the first bimonthly monetary policy meeting of FY17. This is scheduled for 5 April, and would be the second meeting in the current calendar year. It would be useful to take stock of the positive and negative factors since the last meeting that are likely to affect the central bank’s actions and guidance.