RBI Expected to Cut Rates Again in April, HSBC's Bhandari Says

The video discusses the recent RBI rate cut, analyzing whether it was due to political pressure or justified by economic conditions. It highlights the unusual trend of headline inflation being below core inflation due to falling oil prices and stable currency. The discussion extends to the effectiveness of monetary policy in India, given the high weight of food and fuel in the inflation basket. The video concludes with an analysis of the expansionary budget and its potential medium-term inflationary effects, suggesting another rate cut in April but limited scope for further cuts.

What was one of the main reasons for the RBI's rate cut?

• Political pressure

• High inflation expectations

• Inflation being under the 4% target

• Increase in oil prices

What unusual trend was observed in India's inflation recently?

• Both headline and core inflation were negative

• Headline inflation was below core inflation

• Core inflation was below headline inflation

• Inflation was stable across all categories

What is the expected trend for core inflation in the coming quarters?

• It will fluctuate unpredictably

• It will remain stable

• It will decrease

• It will increase significantly

What percentage of India's inflation basket is made up of food and fuel?

• 80%

• 65%

• 50%

• 30%

What is the potential impact of the recent budget on inflation?

• It may increase inflation over the medium term

• It will stabilize inflation in the short term

• It will have no impact on inflation

• It will decrease inflation immediately