3 Aug 2015
RBI expected to remain ‘on hold’ – TDS
FXStreet (Edinburgh) - According to strategists at TD Securities, the RBI would leave its monetary stance unchanged at tomorrow’s meeting.
Key Quotes
“Tomorrow (Tuesday) we have the Indian rate decision”.
“In line with the almost unanimous consensus we expect the RBI to keep all its rates on hold, with the benchmark repurchase rate being held at 7.25%”.
“We are now well into the monsoon season with rains so far running below the norm—the meteorological office is forecasting that this year’s monsoon rains will be 88% of the long-period average”.
“With food making up about 50% of the CPI basket, the RBI will want to see if the shortfall in the monsoon rains leads to upwards pressure on prices before considering the possibility of further cuts”.
“Our central expectation is that the RBI will not be able to cut rates further this year if it is going to meet its 6% target by January 2016”.
Key Quotes
“Tomorrow (Tuesday) we have the Indian rate decision”.
“In line with the almost unanimous consensus we expect the RBI to keep all its rates on hold, with the benchmark repurchase rate being held at 7.25%”.
“We are now well into the monsoon season with rains so far running below the norm—the meteorological office is forecasting that this year’s monsoon rains will be 88% of the long-period average”.
“With food making up about 50% of the CPI basket, the RBI will want to see if the shortfall in the monsoon rains leads to upwards pressure on prices before considering the possibility of further cuts”.
“Our central expectation is that the RBI will not be able to cut rates further this year if it is going to meet its 6% target by January 2016”.