Sachin Sandhir, Global Managing Director, Emerging Business and MD, South Asia, RICS believes that the much anticipated headroom for easing the policy stance is still far from being achieved.
He said, " As the RBI Governor said in his previous monetary policy announcement that he will look at base effect while considering the rate cut, the move is well intentioned"
Driven by softening of fuel and food prices, the wholesale price inflation dropped for the fifth consecutive month to 1.77 per cent in October, its slowest since October 2009. Retail inflation at 5.52 per cent has been the slowest since January 2012. Prime concerns such as food inflation, slowed to 2.7 per cent in October, from 9.6 per cent in May - its lowest level since February 2012. RBI is targeting retail inflation at 8 per cent in January 2015 to 6 per cent in January 2016.