RBI will acknowledge improved outlook for inflation: CLSA

But says rates will likely be kept on hold

The RBI will indicate it is better positioned to achieve CPI inflation forecast of 6% for January 2016, in its policy review, says CLSA.

This will be a change compared to the indication of upside risk to that forecast in the previous policy statement.

CLSA adds rates are widely expected to be kept on hold.

RBI will leave repo rate on hold at Dec 2 meeting, according to a Reuters poll.

Indian markets are pricing in a rate cut despite wary RBI.

CLSA says government actions will facilitate investment, more important for revival than a token monetary easing.

IT adds pick-up in growth in the near term will be gradual and uneven.

CLSA notes the divergence between the Nifty and the real economy will persist for some more time.

 

(Reporting by Abhishek Vishnoi)