Chennai: “We expect the RBI to keep rates unchanged in the current fiscal year (both repo and reverse repo) and wait for more sustainable signals on growth recovery before moving the interest rate needle,” said HDFC Bank Treasury Research.
It added: “In the policy statement, the RBI continued with its line of supporting growth despite the recent spikes in inflation. That said, recognising the concerns a round inflation and the excess build-up in systemic liquidity over the last month, we saw the central bank take its second step towards some form of liquidity normalisation. The first being the tolerance towards some upward adjustment in the 10-year yield in July.”