Dovish RBI’s emphasis, views on core inflation puzzles economists
The Reserve Bank of India (RBI) maintained its interest rate at 5.25% last week, focusing on core inflation rather than the headline rate. While the RBI's inflation target remains 4%, economists are puzzled by its emphasis on underlying price pressures, as June's headline CPI rose to 4.38% despite core inflation holding steady at 3.9%. Analysts await clearer guidance from the RBI on this approach.