Commenting on the policy, Amar Ambani, Head of Research, IIFL, said, “As expected, the RBI kept the repo rate and CRR unchanged at 6.75% and 4% respectively. The policy commentary seems to suggest that pause could continue in the first meeting of 2016 also given that key variables for incremental rate reduction would unfold over the coming few months. While remaining confident about achieving the 6% CPI target of January 2016, the central bank is wary about any spike in food inflation and recent uptick seen in the core index. Pursuit of fiscal consolidation by the government would be critical to offset the inflationary impact of the seventh pay commission. Most likely, the next rate cut will be post the Budget.” | Subscribe To Our Free Newsletter |
