RBI monetary policy: Strong support to our 'MPC on hold' view, says expert

Barclays Chief India Economist Siddhartha Sanyal expect MPC to remain mindful of not stifling growth at current nascent stage of recovery

The Reserve Bank of India’s (RBI’s) decision to maintain the status quo on rates in the April MPC meeting is no surprise. Continuing with the neutral monetary policy stance was also widely expected. However, the lowering of its inflation forecast trajectory by the central bank and the tone of the MPC statement, which is dovish in our opinion, came in as a strong support for our view of the status quo on the repo rate during 2018.

Indeed, the revision in the RBI’s inflation forecast is notable, especially given that the previous set of forecasts was published just two months