India: RBI seen on hold later this week – UOB

Lee Sue Ann, Economist at UOB Group, sees the Reserve Bank of India (RBI) keeping the monetary conditions unchanged at its meeting on Friday.

Key Quotes

“Given the G-SAP and the fiscal response from the Union Budget, we think that further cuts in the policy rate are off the table, and a rate hike might occur in 2022, possibly in H222.”

“As such, we keep to our view for a steady policy rate at 4.0% for the rest of 2021.”