The sixth bi-monthly monetary policy statement of RBI for 2019-20 would be the last one for the current financial year
After the 7.35 per cent December CPI inflation print, we expect the January inflation once again to be close to 7 per cent, and then recede down to around 6 per cent for some months
Goldman Sachs said the central bank will shift the stance of the monetary policy to "neutral" from "accommodative" at this week's review
Patra wrote the monetary policy framework, which targets flexible inflation targeting, and is the basis of the six-member MPC in which Patra is a member
Experts rule out rate cut till April, saying it'll take time for vegetable prices to fall
The MPC underlined the rising consumer price inflation as one of the reasons
The government is in a difficult spot with mounting fiscal challenges, and the central bank indicates it has done enough.
The market and economists were expecting a sure cut in the policy review, considering the weak growth rate
The RBI said it would amend the guidelines for UCBs to reduce concentration risk in exposures
Real estate developers were expecting a rate cut of 50 to 100 basis points
Given that inflation will stay elevated in the next couple of months, a rate cut in Feb and April is ruled out, at least logically
In the absence of near-term government stimulus, markets may remain range-bound until Budget
With the RBI's rate-setting meeting over, the attention now turns to the US Federal Reserve's (US Fed's) two-day policy meet that begins on December 11
Knight FRank India CMD Shishir Baijal said the RBI's decision to not lower interest rate has come "as a surprise and a bit of a disappointment to the industry"
Most leading economists and research houses expected the central bank to cut rates for the sixth time in a row in its fifth bi-monthly monetary policy meeting of the FY20 on Thursday.
GDP growth forecast for FY20 has been revised downwards from 6.1 per cent in the October policy to 5 per cent
The RBI said the monetary transmission has been "full and reasonably swift across various money market segments and the private corporate bond market".
Consequently, the reverse repo rate stands unchanged at 4.90 per cent.
At 12:25 pm, Nifty Bank, Nifty Private Bank, Nifty PSU Bank and Nifty Auto indices were down in the range of 1 per cent to 2 per cent on the National Stock Exchange.
The central bank, which reviews policy on Thursday, should look to pull down long-term yields by selling short-tenor bonds and reinvesting in longer-term ones, said Suyash Choudhary