INFLATION FALLS TO RECORD LOW 0.25%, MAY PROMPT RBI TO CUT POLICY RATE

Wednesday's inflation data is likely to push the Reserve Bank of India’s Monetary Policy Committee to cut the policy rate when it meets in December, with retail inflation, as measured by the Consumer Price Index coming in at 0.25%, resulting ina real policy rate of 5.25%.

- Roshan Kishore

That’s the lowest inflation ever recorded in the current series which starts from January 2012. And it is the highest real interest rate since in the period for which we have data in the current