RBI to opt for a prolonged pause in rate moves: Barclays' Siddhartha Sanyal

We expect CPI to average 3.9% and 4.5% respectively during the first two quarters of 2019, again hefty 30-60 basis points lower than the MPC's current projections for those quarters

The RBI seems justifiably set for a status quo as regards the repo rate in the MPC meeting next week. The central bank delivered a surprise pause in its October policy meet, even as the MPC chose to change the monetary policy stance to "calibrated tightening", ruling out any possibility of rate cuts in the near term. Subsequently, although core inflation (CPI excluding food and fuel) remains elevated, headline CPI inflation - the legislated key target variable for the MPC as per its inflation targeting mandate - hit a thirteen month low in October, surprising to the downside for the