View on Pre-Monetary Policy by Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank

"Given the near term elevated inflation and uncertainty going ahead, we expect RBI to remain on status quo in the upcoming policy. Constraint by the inflation mandate, unless durable reduction in inflation is visible we see limited room for policy actions. Additional monetary easing will remain entirely a function of how growth-inflation trajectory evolve in the months ahead. Meanwhile, we expect RBI to continue to emphasis on its accommodative stance along with tweaks to liquidity/regulatory operations to keep financial market conditions benign. We do not see room for rate cuts until December policy."

Source : Equity Bulls

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