8 Jun 2023 , 12:21 PM
RBI adopts its realistic approach of balancing growth & inflation dynamics, decoupling from the global economy. Also, the past 2 months of CPI inflation is below the RBI tolerance limit, which gives comfort to the RBI to keep the repo rate & stance unchanged. The sharp swing between WPI & CPI spread from positive 880bps in May’22 to negative 560bps in Apr’23 will benefit the gross margins of consumer-facing sectors.
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