India’s retail-inflation rate in September eased to a 99-month low, sharply below the Reserve Bank of India’s (RBI’s) target band, strengthening the case for monetary easing in the coming quarters.
Economists have said this has opened up possibilities for several rate cuts, with the terminal policy rate expected to settle around 5 per cent by the end of next year.
“The September rate expectedly softened further to 1.54 per cent year-on-year (Y-o-Y) on deflation in food prices. The core CPI inflation rate inched up as housing inflation rose. Retail prices month-to-date indicate that the October retail rate is set to