ISSUE NO: 17
SEP-OCT
2) Feels that the rate cut should be
postponed till December.
Led by the hawkish monetary
policy of controlling the money
supply. A rate cut of 0.5% be
effected in two tranches as at
present, inflation rate is hovering
around 5% and present rate cut
will not achieve the target of 4%
inflation rate.
A research paper by Nomura states
that determinants of food inflation
are wages growth, agricultural
input costs, global food prices and
MSP. Hence it is wrong to link
deficit in rainfall with inflation.
The
above
rates
are
an
amalgamation keeping both the
views in mind.
- By Bhagyashree Kulkarni (IMI Delhi), Winner of
Monetaire (Finnacle)
6|Page