Union Budget 2018 may fuel inflation going ahead, notes MPC

The Reserve Bank welcomes the Budget focus on rural and infrastructure sectors that would support rural income and investment and in turn provide a further push to aggregate demand and economic activity.

The Reserve Bank of India (RBI) kept key policy repo rate unchanged at 6 percent at the Sixth and last Bi-monthly Monetary Policy for FY18 on Wednesday continuing with its neutral stance.

The Reserve Bank has also revised the inflation estimates at 5.1 percent in Q4 due to factors including pick up in food prices and international crude oil prices.Read more