The battle against inflation will dominate Reserve Bank of India?s agenda and determine its stance and moves in its mid-quarter policy review, most economists said.
Economists tilt on inflation as the issue or factor topping RBI?s agenda comes amid reports inflation is retreating but at a slow pace.
And food prices remain volatile, despite good monsoon rains leading to forecasts of bumper kharif foodgrain hitting the market in a few weeks.
Economists were asked to choose one of three factors or issues that will set the agenda for the policy action on September 16.
Half of those polled selected curbing inflation as the dominant issue.
A minority said interbank liquidity would be the issue. About 30% of respondents did not comment on the likely agenda. The non-committal stance of the respondents is understandable given that inflation and industrial growth were seen moderating and fresh concerns on global growth is fanning fears of lower than expected economic growth.
The poll sought to identify so to speak the ?judgement call? on the priority RBI will give to managing the objectives of growth, price stability, and financial stability, as governor D Subbarao said late last month.
