According to Brian Tan, Research Analyst at Nomura, the October monetary policy committee (MPC) meeting presents a dilemma for the Reserve Bank of India (RBI) as risks to CPI inflation from a weaker currency and higher oil prices have emerged. Key Quotes “Given the inflation-targeting mandate, frontloaded rate hikes and risks to future growth from tighter financial conditions, we expect the policy repo rate to be left unchanged at 6.50%, although we acknowledge that this is a close call (Consensus: 25bp hike).” “We expect the RBI to maintain its GDP growth projection of 7.4% y-o-y in FY19, but revise down its inflation projection to 4.0-4.5% in H2 FY19 (from 4.8%). For FY20, we expect the RBI to project GDP growth at 7.5% and inflation at 4.6%.” “We expect the neutral policy stance to be retained, but a hawkish commentary given emerging inflation risks.” “Importantly, we will look for any measures to stabilise INR, such as an FX swap window for oil companies.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Italy’s Borghi: Leaving the euro is not in the government’s programme FX Street 4 years According to Brian Tan, Research Analyst at Nomura, the October monetary policy committee (MPC) meeting presents a dilemma for the Reserve Bank of India (RBI) as risks to CPI inflation from a weaker currency and higher oil prices have emerged. Key Quotes "Given the inflation-targeting mandate, frontloaded rate hikes and risks to future growth from tighter financial conditions, we expect the policy repo rate to be left unchanged at 6.50%, although we acknowledge that this is a close call (Consensus: 25bp hike)." "We expect the RBI to maintain its GDP growth projection of 7.4% y-o-y in FY19, but revise down… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
