View on RBI Monetary Policy - Suvodeep Rakshit, Senior Economist, Kotak Institutional Equities

"RBI MPC kept repo rate unchanged along with maintaining the neutral stance as expected. The MPC continued to be cautious on upside risks to inflation even as it revised its estimates lower. In line with our expectations, the March 2019 and March 2020 inflation is expected to remain around 4.5%. With inflation estimated to be in a kind of "no-man's land" (neither too high nor too low), we maintain our call that the RBI will remain on an extended pause. We need to carefully observe the impact of food prices in the near term, risks of fiscal slippages, domestic growth recovery, and evolving global macro conditions (trade wars, monetary policy cycle, and commodity prices) to gauge the RBI's next move."

Source : Equity Bulls

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