New Delhi: After the Reserve Bank of India (RBI) slashed the repo rate by 25 basis points (bps) today, there are several factors that will shape the trajectory inflation. Financial markets are in a volatile state with currencies of several emerging market economies trading with depreciation in the recent period.
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The prices of vegetables will remain elevated in the upcoming months with crude oil prices likely to remain volatile in the near-term.
However, on the positive side, the impact of monetary policy is gradually expected to feed into he real economy and boost demand. The measures announced by the Government over the last two months are expected to revive sentiment and spur domestic demand, particularly domestic consumption.