New Delhi: As inflation may stay ‘benign’ in the range of 3 to 4.4 percent, the Reserve Bank of India (RBI) is expected to keep key policy rates unchanged in the remaining months of 2018-19.
The focus of the Monetary Policy Committee (MPC) remains purely on inflation print, which is expected to be benign (3-4.4 percent) in the second half of 2018, according to a report by Kotak Economic Research.
In the policy review meeting earlier this month, RBI Governor Urjit R Patel, and the majority of RBI’s six-member MPC, favoured keeping the key repo rate unchanged as a part of “calibrated tightening” to keep retail inflation at 4 percent.
“The minutes reaffirmed our view post the October policy and the September CPI inflation print, that the RBI will possibly stay on hold for the rest of 2018-19,” the report said.