It will help policymakers to breath coolly, and has raised expectations that the Reserve Bank of India will review on it in the upcoming monetary policy review on April 1. The wholesale price index (WPI) eased to a nine-month low of 4.68 percent in February, which is lower than expected.
FICCI's President Siddharth Birla said, “The decline in the WPI comes on the back of a similar trend observed in CPI a few days back. This easing of inflation will hopefully create some space for monetary policy easing by the RBI. This is imperative as the sentiment of caution continues to weigh heavy on the minds of investors. In fact according to a recent CEOs Poll conducted by FICCI, a majority 71% reported that high interest rate is a key factor holding back fresh investments.”
"Performance of the industrial sector still remains anaemic and we expect both the government and the central bank to work in tandem and create a pro-growth environment", added Birla.
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