RBI might stay on hold, but ease down the line – JP Morgan

FXStreet (Barcelona) - The Research Team at JP Morgan anticipates the Indian central bank to maintain rates steady today, but see space for further easing down the line.

Key Quotes

“We expect RBI to stay on hold at upcoming policy review as CPI inflation rises and core-core inflation momentum accelerates”

“Cash reserve ratio unlikely to be cut but rationalization of the statutory liquidity ratio expected to continue”

“We expect more easing later in the year, anticipating inflation will remain benign”

“Collapse of the current account deficit, and strong capital inflows allow RBI to focus on domestic dynamics”