It claims poor rains pose a temporary 2.5 per cent inflation risk
The possibility of a rate cut by Reserve Bank of India (RBI) in its August 4 policy meet is "fading", unless rains resume "convincingly" in central and western India next week, a Bank of America (BoA) Merrill Lynch report says.
New Delhi: The possibility of a rate cut by Reserve Bank of India (RBI) in its August 4 policy meet is “fading”, unless rains resume “convincingly” in central and western India next week, a Bank of America (BoA) Merrill Lynch report says.
According to the global financial services major, rains are critical in sowing months of July-August and the ongoing dry spell in central and western India, which grows oilseeds, pulses and raw cotton is worrisome.
“We worry about the dry spell since late June as the bulk of the cropping takes place in July and August,” BofA-ML said adding that “rains have slipped to 92 per cent of normal from 116 per cent in June”.
It claims poor rains pose a temporary 2.5 per cent inflation risk.
( Source : PTI )
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