Inflation finally in target range, but RBI may still not cut rates: Experts

Bond market is not factoring in a rate cut in February policy either

The December inflation print coming within the RBI’s target range of 2-6 per cent may have given some comfort to the six-member Monetary Policy Committee (MPC), but it may not immediately open the door to rate cuts, say experts.  

The consumer price index (CPI)-based inflation rate eased to a 15-month low of 4.59 per cent in December owing to a slump in food prices, and the base effect, but the core inflation remained largely sticky at 5.2 per cent from 5.4 per cent earlier. At the same time, the November Index of Industrial Production (IIP) contracted 1.9 per cent, against 4.2