Image Source : FILE/PTI RBI unlikely to chop rates of interest regardless of dip in December retail inflation: Report
The Reserve Bank of India (RBI) is unlikely to additional ease the rates of interest within the subsequent assembly of its Monetary Policy Committee though retail inflation declined in December 2020, a report by Motilal Oswal Institutional Equities stated.
The ‘Ecoscope’ report famous that the central financial institution is more likely to proceed with its calibrated method in the direction of the administration of home liquidity.
“It is for the first time since the COVID-19 pandemic began that the CPI inflation has come within the RBI’s target inflation range of 2-6%. What remains to be seen is if the downward trajectory in food prices continues during CY21. In any case, we do not expect any further monetary easing and the RBI is likely to continue to manage domestic liquidity in a calibrated manner,” it stated.
The Consumer Price Index-based retail inflation for December got here in at a 14-month low of 4.59 per cent, down from 6.93 per cent in November, attributable to decrease meals inflation, confirmed official knowledge launched on Tuesday.
The Motilal Oswal report famous that the retail inflation knowledge for final month was precisely in step with its expectation, however decrease than market consensus of 5 per cent.
The Consumer Food Price Index (CFPI) for final month got here in at 3.41 per cent, down from 9.50 per cent in November 2020.
The provisional rural CPI in December 2020 was recorded at 4.07 per cent, down from 7.20 per cent within the earlier month. The city CPI was 5.19 per cent in December 2020, in contrast with 5.19 per cent in November final.
Latest Business News
