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RBI not expected to hike key lending rates for the rest of FY19: SBI report

We expect CPI for FY19 at 4.2% and our inflation trajectory projection makes us believe that rate hike is now off the table in FY19, says the report

IANS  |  Mumbai 

Reserve Bank of India | File Photo
Reserve Bank of India. File Photo

The Reserve Bank of India (RBI) is not expected to hike key lending rates in the current fiscal, an said on Saturday.

"marginally increased to 3.77 per cent in September 2018. Interestingly, on a month-on-month basis, rural food inflation has registered a decline, even as headline registered an increase," the report said.

"Meanwhile, core declined to 5.81 per cent in September 2018 from 5.92 per cent in August 2018. We expect CPI for FY19 at 4.2 per cent. Our makes us believe that is now off the table in FY19."

On October 5, the belied market expectations of a It held the key lending rate unchanged in the context of an uncertain global economic scenario but turned hawkish in its stance, moving to one of calibrated tightening from the "neutral" it had maintained over its six previous policy reviews.

First Published: Sun, October 14 2018. 00:08 IST
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