Eye on high retail inflation, RBI may maintain status quo

Shanti Ekambaram, group president–consumer banking, Kotak Mahindra Bank, said, “With inflation continuing to trend well above RBI’s medium-term target of 4 per cent, there is limited room for a rate cut in the upcoming policy. All in all, expect the MPC to maintain a status quo on rates with an accommodative bias.”

“We expect the RBI to retain the policy rate at 4 per cent and continue with the accommodative policy stance despite the buildup in inflationary pressures,” Care Ratings said. Retail inflation has been inching upwards in recent months and rose to a 9-month high of 7.6 per cent in October.