Leading Market Voices on Rbi Policy Meeting, Future Group-Amazon Affair, Vodafone-Idea and Ipos
| Soumya Kanti Ghosh, Chief Economic Advisor, State Bank of India Group: Politics have actually tried to set a very, very clear tightrope in terms of growth and inflation targets. The RBI actually raised the inflation forecast and lowered the growth forecast for the third and fourth quarters. At the same time, the central bank says growth is gaining ground in the short term. So basically if we try to combine the two statements – that the traction gain growth the economy is currently showing can actually run out of steam over time if broad policy actions are and are not taken, this is point number one. Point number two is whether inflation is actually going to rise, and the RBI forecast shows 5.7% and simple data rightly shows that if we actually take a look at the components that fuel inflation, and that is mainly in rural areas, is mainly fuel, edible oils, legumes which have a weighted contribution of more than 50 percent to the overall rural CPI. So if I just try to put all of these things into perspective, my observation is that these statements show that the 9.5% growth forecast that the RBI made in politics might have a downward bias on the downside. future if economic momentum fails to maintain traction as is currently what we are seeing. So I think that’s the message we need to read between the lines.