Reserve Bank of India out with latest decision 6 Dec
- reverse repo unchanged at 5.75%
- cash reserve ratio unch at 4.0%
- retains neutral policy stance
- 5 from 6 MPC members voted to keep rates on hold
- MPC remains committed to keeping headline inflation close to 4%
- sees H2 2017 inflation 4.3-4.7%
- upside risk to inflation continues
- recent rise in oil prices may have neg impact on margins and gross value added growth
Indian equity markets not liking the hawkish/cautious stance on inflation risks with NSEI down 0.6% but rupee enjoying some gains before reversing.
