Key Points
Strong economic growth and moderating inflation means India's central bank will have room to keep interest rates on hold at its review this week and likely until July, economists say...
All 56 economists in the March 15-22 Reuters poll expected the RBI to hold the repo rate at 6.50% while most expect no change at least until July...
"We think the RBI will have to consider the balance of risks between over tightening (given the 'not-too-hot-nor-too-cold' state of the economy) and maintaining monetary policy conditions for achieving reasonably good real GDP growth of at least 7.0%," Barclays economists wrote, referring to the proverbial "Goldilocks" ideal state of stable economic growth...
Headline inflation in India has remained above the central bank's target, core inflation has fallen below 4%, which some say may allow the central bank to signal policy easing ahead...
The RBI's monetary policy setting is independent but that has not prevented governments in the past from exerting pressure on the central bank for easier lending policies to support growth...
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