Reserve Bank of India governor Shaktikanta Das has received support from Bank of America Merrill Lynch (BofAML) on his view that fiscal risks from raising extra-budgetary resources are mostly overdone and that the borrowings of state-run enterprises should not be included into that of the sovereign. 
The six-member RBI Monetary Policy Committee (MPC) was divided in its view of fiscal slippage and its impact on inflation trajectory. While the inflation trajectory has been within the central bank’s comfort level, prompting every MPC member to vote unanimously for a 25-basis point policy rate cut in June, any disruption on prices may change the way MPC members see the possibility of further rate reductions.