RBI predicted to keep rates unchanged at 5.15% on Thursday – UOB

Economist at UOB Group Lee Sue Ann sees the RBI leaving the monetary status quo unaltered at Thursday’s meeting.

Key Quotes

“Given that inflation has surpassed RBI’s inflation range of 2-6% (7.35% in December), policymakers could remain reluctant to inject further accommodative measures via rate cuts at this meeting as it may exacerbate the increase in consumer prices in the year ahead. Still, we pencil in one more rate cut (in March) as India’s domestic economy remains weak amidst a soft automobile industry, poor external environment and an uncomfortably high unemployment rate”.