Analysts at TD Securities expect the Reserve Bank of India (RBI) to stay on hold at the policy meeting on 5 December.
Key Quotes
“At the 5 October meeting the RBI left the repo rate unchanged in a 5-1 vote, contrary to expectations. However the RBI shifted its stance from “neutral” to “calibrated tightening”, which we interpret to mean data dependent. We expect no change in stance at this meeting.”
“A moderate outlook for inflation, taken together with a firmer INR will mean that the RBI is unlikely to feel pressure to tighten policy at this meeting.”
“We think they will likely wait until at least February 19, at which point there will likely be more concrete signs of higher inflation, before pulling the trigger to another hike.”
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