October inflation print raises question mark on credibility of RBI forecasting: SBI Research
The SBI report called upon the MPC to work with short-term forecasts for the next three-six months as macro-variables like oil prices are now almost difficult to predict. It pointed out that the oil price crash in FY15 had resulted in inflation undershooting RBI projection by more than 3 percentage points in December 2014.
The latest inflation print indicates the "uncertainty" about the inflation forecasting done by the six-member Monetary Policy Committee, which sets the interest rates. Image source: Reuters