Oil prices will help...

Inflation is closer to the upside-target even when we have used a higher price base-year and also a change in methodology. A change to a higher-price base-year for inflation will reduce inflation relative to the low base-year. A low price base will show higher inflation... All these changes in the base-year and methodology have made our inflation target achievable... And, if we will retreat to original base year, definitely the inflation rate would be higher... more than 5.11% and hopefully less than 6%... A rate cut is warranted only when our inflation-rate is lower than 5%... and, probably the effect of lower oil prices is yet to show-up in the latest inflation data for the last quarter or later... We are definitely on a glide-path... an all around lower prices because of low transport cost/prices... But, no doubt economists and policy makers need data to decide and justify the course, for more informed decisions, too... It is not always necessary for the RBI to keep the inflation rate lowest, also because of price-rigidity, but it is important to keep it low and try to stabilize at that level... means more consistency in policy, not too much frequent changes... INDIA is a supply-constrained economy, not only in terms fuel and energy like the developed countries, but also due to bad marketing of other essentials of life, mainly food... A rate cut would help exports competitiveness. More money-supply, more depreciation... Good time to build-reserve, too, more depreciation...