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Elections come into focus, RBI won’t relax yet

Pre-election giveaways seem to have started in India and are likely to be ramped up further ahead of next year's general election. Although this could cause the Finance Ministry to narrowly miss its deficit target this year, fiscal policy would still be tighter than it has been over the past couple of years. Meanwhile, the minutes of this month's MPC meeting confirm that the RBI won’t be turning its attention to policy easing anytime soon. 

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