RBI to keep policy rates on hold, maintain neutral stance: Report

RBI to keep policy rates on hold, maintain neutral stance: Report

The Reserve Bank is expected to keep policy rates on hold and maintain its neutral stance at the ensuing policy review meet early next month, says a Morgan Stanley report. According to the global financial services major, although India’s economic growth is on an uptrend, recovery remains in an early stage, and this warrants a neutral stance.




“Considering the growth and inflation backdrop relative to the Monetary Policy Committee (MPC’s) assessment, we expect the MPC to remain on hold and maintain its neutral stance,” Morgan Stanley said in a research note. The central bank’s next monetary policy review is scheduled for April 5. It had kept the policy rate unchanged in its February meeting on fears of inflation.




Headline CPI inflation print for January-February has averaged 4.8 per cent. This is slightly weaker than the RBI’s projection of 5.1 per cent for the March quarter this year.

The Business Standard, New Delhi, 27th March 2018

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