You are here: Home » Economy & Policy » News
NCR residential sales grow 43% in Oct-Dec on festive discounts: JLL
Tomar says 290 million farmers enrolled so far under crop insurance scheme
Business Standard

RBI may not cut rates despite drop in retail inflation: Motilal Oswal

The Reserve Bank of India (RBI) is unlikely to further ease the interest rates in the next meeting of its Monetary Policy Committee even though retail inflation declined in December 2020, a report by

Topics
Reserve Bank of India | Inflation

IANS  |  Mumbai 



Governor Shaktikanta Das has pledged to stay accommodative well into 2021 as he tries to dig the economy out of an unprecedented technical recession

The (RBI) is unlikely to further ease the interest rates in the next meeting of its Monetary Policy Committee even though retail declined in December 2020, a report by Motilal Oswal Institutional Equities said.

The 'Ecoscope' report noted that the central bank is likely to continue with its calibrated approach towards the management of domestic liquidity.

"It is for the first time since the COVID-19 pandemic began that the CPI has come within the RBI's target range of 2-6%. What remains to be seen is if the downward trajectory in food prices continues during CY21. In any case, we do not expect any further monetary easing and the RBI is likely to continue to manage domestic liquidity in a calibrated manner," it said.

The Consumer Price Index-based retail inflation for December came in at a 14-month low of 4.59 per cent, down from 6.93 per cent in November, due to lower food inflation, showed official data released on Tuesday.

The Motilal Oswal report noted that the retail inflation data for last month was exactly in line with its expectation, but lower than market consensus of 5 per cent.

The Consumer Food Price Index (CFPI) for last month came in at 3.41 per cent, down from 9.50 per cent in November 2020.

The provisional rural CPI in December 2020 was recorded at 4.07 per cent, down from 7.20 per cent in the previous month. The urban CPI was 5.19 per cent in December 2020, compared with 5.19 per cent in November last.

--IANS

rrb/sn/tsb

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Wed, January 13 2021. 14:11 IST

RECOMMENDED FOR YOU

.