Sanjeev Prasad, executive director and co head, Kotak Institutional Equities expects Reserve Bank of India (RBI) to keep policy rates unchanged today.
As far as the immediate short-term policy announcement today goes, we are not expecting much. The RBI will pause for the time being and you can not rollout a CRR cut given other issues in the economy at this point of time. So, from an economic perspective, I don’t see much of an impact of this, said Mr. Prasad.
The real impact will only come when the RBI is confident enough about inflation having contained and starts reducing policy rates. But I don’t see that happening before early part of the next fiscal year. So, we would still wait and watch as far as this matter is concerned.
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