RBI to stay in ‘wait-and-watch’ mode, supply side induced hike in inflation under watch

While a policy rate hike is surely not a zero probability event, the bar for the same appears high for now, with the Reserve Bank of India (RBI) likely to look through the supply side induced increase in inflation, according to a new report.Geographic Reference Yes Bank’s own estimates indicate headline WPI averaging 9.0 per cent for the year while headline CPI is expected to be at 4.8 per cent (year-on-year). “As we had indicated...