NEW DELHI: The Reserve Bank of India is expected to stay key policy charges unchanged in the remaining 2018-19 fiscal as inflation may stay 'benign' within the vary of three to 4.4 according to cent, says a record.
According to the record via Kotak Economic Research, the focus of the Monetary Policy Committee (MPC) remains purely on inflation print, which is expected to stay benign ( 3-4.4 according to cent) in the second one part of 2018-19.
"We thus see limited scope for rate hikes in the rest of 2018-19," the record added.
In the policy assessment meet previous this month, majority of RBI's six-member MPC, including governor Urjit R Patel, favoured to stay the important thing repo charge unchanged as a part of "calibrated tightening" to stay retail inflation at 4 according to cent.
"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 record mentioned.
It alternatively added that upside dangers to inflation nonetheless exist owing to pass-through of MSPs, elevated crude oil prices, volatility in global monetary markets, hardening of input prices amid rupee weakness and staggered affect of HRA will increase via states and its second-round affect.
"However, the seemingly structurally benign food inflation along with softening growth should help in capping the upside pressures, thereby providing RBI the comfort of staying on pause mode in the foreseeable future," it mentioned. During its October monetary policy assessment, RBI kept the important thing repo charge unchanged at 6.50 according to cent.
According to the record via Kotak Economic Research, the focus of the Monetary Policy Committee (MPC) remains purely on inflation print, which is expected to stay benign ( 3-4.4 according to cent) in the second one part of 2018-19.
"We thus see limited scope for rate hikes in the rest of 2018-19," the record added.
In the policy assessment meet previous this month, majority of RBI's six-member MPC, including governor Urjit R Patel, favoured to stay the important thing repo charge unchanged as a part of "calibrated tightening" to stay retail inflation at 4 according to cent.
"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 record mentioned.
It alternatively added that upside dangers to inflation nonetheless exist owing to pass-through of MSPs, elevated crude oil prices, volatility in global monetary markets, hardening of input prices amid rupee weakness and staggered affect of HRA will increase via states and its second-round affect.
"However, the seemingly structurally benign food inflation along with softening growth should help in capping the upside pressures, thereby providing RBI the comfort of staying on pause mode in the foreseeable future," it mentioned. During its October monetary policy assessment, RBI kept the important thing repo charge unchanged at 6.50 according to cent.
'RBI likely to stay on hold for rest of FY19'
!['RBI likely to stay on hold for rest of FY19']()
Reviewed by Kailash
on
October 23, 2018
Rating:
