Don’t ignore the key message in India’s inflation report: ANZ
NEW DELHI - ANZ Bank is tipping the Reserve Bank of India to carry on with its easing cycle and to cut the repo rate by 50 basis points at its August meeting.
India's headline inflation stayed on the high side in June as data collection normalised after two months.
"Nonetheless," ANZ says, "the important takeaway is that overall prices are moderating, if the revised methodology used to calculate missing series from April and May are anything to go by."
It says inflation will likely return to the Reserve Bank of India's target band from next month, and continue to remain immaterial for monetary policy."