Vikas Khemani, President and CEO, Edelweiss Securities, on the RBI monetary policy.

Overall, in our view, this was a balanced policy and mostly on expected lines. With the unusually hot summer in India having lifted up the prices of perishables and the and crude prices too having moved up, Inflation can certainly move up in the near-term. However if the monsoon is along expected lines and well distributed, then we expect prices to ease back with CPI inflation heading back towards 5% by year end. In this event if all goes well, we foresee another 50 bps rate cut during rest of FY17. With the ~USD 20 bn expected outflow under FCNR scheme coming soon, the fact that RBI is ready to intervene to manage FX volatility/liquidity should be another cause for comfort to everyone.”