Growth will be very key. What RBI is thinking on growth will be very important, said Deepali Bhargava, Economist at Credit Suisse.
A CNBC-TV18 poll shows that 100 percent of respondents expect a status quo at the monetary policy this afternoon. In an interview with CNBC-TV18, Deepali Bhargava, Economist at Credit Suisse and Vivek Rajpal, Rates Strategist at Nomura India shared their expectations.
Growth will be very key. What RBI is thinking on growth will be very important, said Bhargava.
Pressure points for inflation are on the higher side but I don’t expect them to sound very hawkish given the fact that we expect goods and services tax (GST) rate cuts, which have happened and further cuts which may happen to filter in through into consumer price index (CPI) sometime after November, she added.
Bhargava believes that core inflation looks positive for next few months from GST rate cut point of view.
We are mildly positive on rupee on a 12-months horizon, so don’t see a big worry over rupee right now, she said.
Speaking about RBI policy, she mentioned, “We do have a rate cut in February and growth will continue to remain weak.”
According to Vivek Rajpal, there won’t be a huge impact on growth forecasts.
Market is expecting RBI to turn neutral to hawkish in this policy, he said.
For entire discussion, watch accompanying video...
