"Fears of global recession have just re-emerged. I suspect that when we next meet in September, it will be an issue," Subir Gokarn, who handles monetary policy at the central bank, told reporters on the sidelines of an event in Hyderabad.
"So far there have been concerns about the extent of the recovery not being strong. Second recession was not in realm of probability till very recently," he said, referring to fears about the US economy. Source - http://www.moneycontrol.com/news/economy/global-fears-easing-prices-to-impact-rbi-stance-gokarn_573479.html
This is the first hint in months, from RBI that things are starting to unravel across the world as far as RISK is concerned and thus RBI needs to keep the issues of lower commodity prices into account when meeting in September. Provided the US markets go into 2 month correction/ consolidation phase - it may result into topping of interest rates in India as the result for the next 1 year. Lets see.
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