Inflation, rate-cuts and the RBI's credibility...

Article;
RBI in no mood to abandon fight against inflation.

Comment;

From the middle of 2015 we already are going to see fall in the inflation rate because the government is going to change the base-year for inflation from 2004 to 2012... That would probably make a case for rate cuts... Hope... the RBI uses the same data...

Article;

RBI keeps interest-rates unchanged, 7% inflation-forecast clouds rate-cut hopes.

Comment;

Once the RBI's credibility regarding inflation is established and supply-side bottlenecks removed, inflation would remain within limits 4-6% in the long-run (next-generation)... Europe, US and Japan are good examples... People will follow the central-bank...