Retail inflation hit a 17-month trough of 2.33% in November, while industrial production growth scaled a 11-month peak of 8.1% in October. This brightens the prospect of a change in the monetary policy panel’s stance from “calibrated tightening” to “neutral” in its next meeting in February (if not an outright rate cut yet), given the new RBI governor’s focus on growth and his view that inflation remains benign.
