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RBI status quo on policy rates by RBI was in line with consensus and our expectations :Expert

UNI India-English 2017-12-07 00:22:51
Mumbai, Dec 6 (UNI) The Reserve Bank of India (RBI) on Wednesday
hold the short-term lending rate, also known as repo rate, unaltered
at 6 per cent in its fifth bi-monthly policy review of the fiscal
year here what the expert has to say about it
Mr.
Naresh Takkar MD and Group CEO ICRA Limited said With an
intensification of the inflation risks related to commodities and
perishables since the last review, the six-member Monetary Policy
Committee (MPC) expectedly stayed on hold in the December 2017
policy, with a split vote of 5:1.

Moreover, it retained the neutral stance of monetary policy,
balancing a slight uptick in its inflation projection for H2 FY2018,
with a retention of the GVA growth forecast, which essentially
entails a sharp pickupin economic expansion in the latter half of
the year.

The tone of the policy document was not particularly hawkish, which
mildly cooled the 10 year G-sec yield.
Nevertheless, the expected
uptick in CPI inflation spells a low likelihood of rate cuts in the
immediate term.