RBI's very cogent view: Do not expect a repo rate cut before 2018

RBI's view on GST critical and impartial; policy statement recognises 7.1% GDP growth achieved last year will not be attained, inflation situation will remain grim in the range of 4.2-4.6%

In the fourth bimonthly review of its monetary policy, the Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) on Wednesday kept the repo rate unchanged at 6 per cent, even as the central bank lowered its estimates for gross value added (GVA) growth for the current financial year to 6.7 per cent from 7.3 per cent earlier. The author analyses RBI's policy for Business Standard.

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There was no expectation of any rate cut this time but what was of interest in the Monetary Policy Statement was the analysis provided by the RBI on the state of the economy and