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CPI will moderate to 6% by January 2016, UBS has said, in line with RBI's inflation target.
UBS said inflation in India is not "a structural issue", instead it said it is a demand-supply issue that can be addressed with monetary policy.
RBI's inflation targeting is already enjoying "some success" in bringing inflation under control, UBS said, adding that it expects the central bank to keep rates on hold til late FY2015.
UBS expects 10-year government bond yield at 6.5% by end FY16 vs previous forecast of 7%.
