RBI seen ‘on hold’ this week – BBH

According to the research team at BBH, the Reserve Bank of India is expectd to keep its monetary stance unchanged at this week’s meeting.

Key Quotes

“Reserve Bank of India meets Tuesday and is expected to keep rates steady. This will be the first meeting under new Governor”.

“CPI rose 5.1% y/y in August, which is near the top of the 2-6% target range. This should prevent any near-term easing, especially if the rupee remains under pressure due to increased tensions with Pakistan”.

“It’s been on hold since the last 25 bp cut back in April”.