Little scope for RBI to take its foot off the gas

The RBI need not match the Fed one-to-one but there seems little scope to take its foot off the gas

How does one interpret a monetary policy statement that combines a relatively sanguine view on growth with an admission that inflation, particularly core inflation that nets out volatile components like food and fuel, is still a major concern? Going by the textbook, one would conclude that monetary tightening is not quite over yet or even likely to be over in the near future.

Thus, while the 35-basis-point (bp) hike announced in the policy on Wednesday was in line with market expectations, markets may have to wait before they exhale. More rate increases seem due and the terminal policy repo rate