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The Reserve Bank of India is likely to keep the key rates unchanged in its quarterly monetary policy on Tuesday, said a CNBC-TV18 poll of bankers and economists.
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The majority of the candidates polled do not believe the RBI will announce any change in its stance for the rest of the financial year. Only 5 percent feel a 25 basis points repo rate hike can come through. Around 10 percent respondents see 25 bps hike and another 10 percent expect 25 bps cut till March-end.
After taking over the reins as the governor of the central bank, Raghuram Rajan, had raised rates twice. He, however, left the repo rate unchanged at 7.75 percent in the last monetary policy in December but said that he will keep an eye on inflation.
"Nobody should doubt our desire to fight inflation and our belief that interest rates are our main tool that we have. Nobody should doubt that," Rajan had said in December.
He said RBI will wait for the next set of data on inflation and industrial growth before taking a call on interest rates. "We want to see data on how the work we have done so far is playing out and then we will take the next step," he had said, adding, "Don't judge me by whether I raise interest rates in every meeting."
The market also does not expect RBI to revise its forecast on FY14 GDP growth, wholesale price index (WPI) and consumer price index (CPI) numbers. A total of 75 percent of bankers and economists polled by CNBC-TV18 expect RBI to keep GDP growth unchanged at 5 percent.
Most of the poll respondents are however anticipating a hawkish tone from Rajan, while 35 percent feel he may adopt a neutral stance. But all eyes are on what Governor Rajan has to say on the Urjit Patel Committee report which recommends inflation targeting as the predominant objective of monetary policy going forward.
via Business - Google News http://ift.tt/1f895we
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