India expected to keep rates on hold – BBH

According to analysts at BBH, the Reserva Bank of India is seen ‘on hold’ at its meeting tomorrow.

Key Quotes

“Reserve Bank of India meets Tuesday and is expected to keep rates steady at 6.5%”.

“Both CPI and WPI inflation have been ticking higher, which warrants caution ahead of the monsoon season”.

“Reports that Governor Rajan does not intend to return for a new term is concerning, as he is well-respected by the markets. We expected Prime Minister Modi will do his best to keep him on.  India reports April IP Friday”.