RBI's no more rate cut stance is a strong message to Modi Sarkar

This may be the most dovish move yet from Reserve Bank of India governor Raghuram Rajan. He has raised the inflation forecast from 5.8% to 6% for January 2016 and simultaneously cut rates. If inflation does go above the RBI’s April trajectory and comes in above 4% in August, because of the poor monsoons, it would have been difficult for the central bank to cut rate then.Hopefully the government will take on board all suggestions rather than simply harp on rates and arm-twist the central bank into losing the hard won gains on inflation.