Falling crude oil prices and better rainfall in recent weeks may have tempered inflation risks in India, but don’t expect the country’s central bank to ease monetary policy anytime soon, say economists.
The Reserve Bank of India (RBI) is widely expected to keep its benchmark repo rate unchanged at 8.0 percent when it meets on September 30, according to a Reuters poll.
“We expect rates to be kept unchanged and for RBI to maintain a cautious outlook on inflation despite an expected undershoot in near-term inflation,” said Devika Mehndiratta, senior economist, South Asia & ASEAN at ANZ.
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