Key Points
The Reserve Bank of India (RBI) is likely to maintain status-quo on the key interest rates for the third time in a row in its upcoming bi-monthly policy review meeting - Monetary Policy Committee (MPC) - despite the US Federal Reserve and the European Central Bank hiking benchmark rates, experts told the news agency PTI..
The central bank may not hike the rateas domestic inflation is within the RBIs comfort zone, they said...
The RBI has retained the rate at 6.5 per cent since February when it was raised by 25 basis points from 6.25 per cent..
Kotak Mahindra Bank's chief economistUpasna Bhardwaj said: "On the policy stance since the liquidity conditions have turned favourable post the announcement of the withdrawal of the Rs 2,000 note, we expect the RBI to continue to hold on to the current stance of withdrawal of accommodation'."..
"As a result, we expect the MPCs commentary to be fairly hawkish, amid a continued pause on the repo rate and stance in the upcoming policy review," she said.. V Swaminathan, Executive Chairman of Andromeda Sales, said the RBI will maintain the status quo and opt for a hawkish stance in view of the recent rate hikes announced by the Fed and European Central Bank..
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