Expect government to focus on high quality fiscal consolidation: Rana Kapoor

NEW DELHI: : As far as policy action is concerned, Governor Rajan has clearly thrown the ball in the government’s court this time. Rajan said he will look to the upcoming annual budget statement for details of government plans to encourage growth and control inflation, and will consider it as "a package".

It's an accomodative bias, which industry leaders accept well. "Although the RBI maintained monetary status quo, the accommodative bias continues. With CPI inflation poised to moderate to 5% levels by end FY17 and government committed towards spurring investment-led growth and maintaining high quality fiscal consolidation, incremental room for monetary accommodation will open up post the announcement of FY17 Union Budget."

I expect the RBI to play a complementary role and lower rates by 75 bps in 2016.”