The repo rate is likely to remain unchanged in the upcoming policy review in June 2017 by Monetary Policy Committee (MPC) of the RBI and the policy tone to be less hawkish, predicts ratings agency ICRA. Naresh Takkar, Managing Director and Group CEO, ICRA accounts this to “the improved outlook for the monsoon, rate structure of the goods and services tax (GST) and easing of commodity prices”, which have subsequently abated the inflation risks highlighted by the MPC in April 2017.
“The MPC may choose to observe the actual progress of the monsoon and the adjustment during the transition to
