Irrespective of RBI Guv, focus should be on inflation-:- Equity Research

With anticipation rising over the next Reserve Bank governor, Jahangir Aziz of JPMorgan believes that whoever is chosen must continue to focus on macro stability in the country. Inflation should continue to be the main focus of RBI going forward. It is unlikely that inflation target is changed as the current target has blessing of the government, he says. He added that the room for easing will continue to stay limited as the RBI is likely to stick to its 4 percent inflation target. The consumer price index (CPI) for June came flat at 5.8 percent due to higher vegetable and fruit prices. While monsoon will ease prices, inflation is likely to slowdown. Aziz expects inflation to hit 5 percent by March 2017. On global economies, Aziz says that Emerging markets asset classes will outperform developed markets. Major central banks are likely to reduce rates further.