RBI to hold rates amid inflation caution, growth outlook

The Reserve Bank of India (RBI) is expected to uphold the status quo on both policy rate and stance for the tenth consecutive time in its October policy meet, says a research report by the Bank of Baroda (BoB).

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“The newly constituted MPC is likely to await more clarity on the evolution of the inflation trajectory before embarking on monetary easing path. While the near-term outlook on inflation is positive, the MPC’s decision is likely to be guided by the long-term outlook of inflation and growth, as has been explicitly stated by the Governor,” says BoB report.