An emotionally charged speech by Anil Ambani partly overshadowed the RBI’s Q1 review, which by the way held no surprises. We will only say that we haven’t heard the last word on the RIL-RNRL matter. Though the Supreme Court’s verdict should be binding, one cannot rule out surprises.
Coming to the RBI, the central bank sees an upward bias to growth. At the same time, it warns of an inflation spike in the second half of FY10. It is amply clear that interest rates have bottomed out and will head higher in step with the economic recovery. One will have to keep an eye on the trend in inflation, both locally and globally.
