“These factors suggest the need for higher rates but, surprisingly, the bank avoided any explicit indications of the higher risk of demand-driven inflationary pressures.”
“Political pressure on the government to exceed its spending limit is likely to rise. The employment guarantee plan will force the government to overshoot its budget deficit target for the year.”
“Industrial activity may moderate this year but will still remain strong. Monetary tightening by the central bank has raised concerns about the growth outlook.”
