RBI keeps all options open to manage liquidity

Inflation and central bank policy rates seem to have peaked for most countries, while the pace of economic activities remains varied across economies

The status quo on key policy rates in the meeting of the monetary policy committee (MPC) was no surprise.
 

The communication from the Reserve Bank of India (RBI) remains a balanced and pragmatic one.
 

The central bank came across less hawkish in December, taking into account softer commodity prices and global activity indicators in recent months.

The upward revision in growth expectation by the RBI remains noteworthy, especially given stronger confidence on further broad-basing of domestic growth momentum. On the inflation front, while a few high readings seem imminent, the RBI appear prepared to look through spikes in headline inflation