RBI keeps rates unchanged: Don't expect miracles till March 2018

Unless inflation falls very sharply or growth slumps, will there be a reversal till March 2018

The MPC quite expectedly has maintained a status quo on rates this time and the indication is that there would be no rate cut this year till March. This conclusion can be drawn from the fact that the forecast for the rest of the year for inflation has been put at 4.3-4.7per cent. The view on liquidity also appears to be fairly straightforward given the surpluses that are there in the reverse repo window. Hence, an unchanged stance is what one can expect unless there is a serious reversal of the fundamentals. 

The Report rightly highlights the latent inflation potential