The Reserve Bank of India (RBI) on Tuesday said that inflation is likely to be around the target level of 6 per cent by January 2016.
As regards the path of inflation in 2015-16, the RBI said it will keenly monitor the revision in the Consumer Price Index (CPI), which will rebase the index to 2012 and incorporate a more representative consumption basket along with “methodological improvements.
The effect of new Consumer Price Index (CPI) and the current inflation will be felt during 2015, the Dearness Allowance will be marginal that is about 2% in July 2015.
The estimate for real GDP growth in 2015-16 is expected to rise to 6.5 per cent with risks broadly balanced at this point, it added.
RBI Governor said that the forthcoming budget is an important factor for the monetary policy. “There’s the budget coming. That’s a significant change in the fiscal space. It’s going to be an important change.”
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