Post Budget proposals, analysts see RBI holding rates in February MPC meet

Following the November print of 5.54%, RBI had sprung a surprise and opted to hold the repo rate at 5.15 per cent. It, however, continued with the accommodative stance as long as it was necessary.

After the Budget presentation last week, investors are now looking forward to the Reserve Bank of India’s (RBI) February bi-monthly policy outcome. The central bank’s monetary policy committee (MPC) began its three-day meeting on February 4, and will announce its decision on February 6.

Most economists expect the central bank to maintain a status quo today, even as they remain divided on whether the central bank will continue to retain the 'accommodative' stance as regards the tone of the policy.

Aditi Nayar, principal economist at ICRA, for instance, expects the RBI to maintain status quo on February 6, but sees