Quotes from Barclays Capital: -Although the near-term focus of monetary policy in India remains on containing INR weakness, we continue to believe that reviving growth in a non-inflationary manner remains the priority from a more medium-term perspective.

-We recently downgraded our FY 13-14 growth forecast to 5. 3%, from 6. 0% earlier and downside risks to such projections cannot be ruled out.

-As such,  monetary policy calibration should eventually be biased toward further easing rather than tightening. Amid the current market volatility, further policy easing will likely have to wait - we still expect 75bp of repo rate cuts, but starting only in December 2013.

2013-8-21 17:42