patel as such we believe that the problem of poor monetary policy transmission is likely to persist for the foreseeable future this it said could see the rbi deliver steeper interest rate cuts than in tandem with a fiscal stimulus package currently being formulated by the government to support economic activity fitch maintained its forecast for overall inflation to remain weak and to average 38 per cent over fy201920 below the 4 per cent midpoint of the central banks 26 per cent inflation target range our view continues to reflect our expectation for a gradual pickup in inflation from 32 per cent yoy in july we believe that subdued inflationary pressures will also provide room for the central bank to prioritise growth and cut interest rates further to support economic activity it said while still relatively benign food inflation has been on an uptrend and this trend may persist over the coming months due to lower crop production exacerbated by unfavourable growing weather fitch said our view for previously low crop prices to prompt production cutbacks in the ongoing growing season appears to be playing out as according to the rbi the total area sown under kharif crops was 66 per cent lower than a year ago the late arrival of monsoon rains as well as floods caused by the excessive rainfall in peninsular and central india covering the agrarian states of maharashtra andhra pradesh gujarat and west bengal amongst others may negatively impact crop yields in the ongoing kharif growing season from july to october pushing up food inflation that said the rise in food inflation would be partially offset by weak inflation in the fuels and lighting category on the back of lower average oil prices anz drr