Monetary panel may keep rates unchanged in policy review

The panel may cite inflationary pressure as well as the economic recovery as reasons for maintaining the status quo.

The Monetary Policy Committee (MPC) is unlikely to change interest rates in its fifth bi-monthly policy statement, scheduled on December 6, said an ET Poll conducted among 20 market participants.
 
The panel may cite inflationary pressure as well as the economic recovery as reasons for maintaining the status quo. 
 
“Growth concerns are likely to somewhat recede in the coming quarters as the positive impact of reform measures like GST (goods and services tax) will creep in,” Shubhada Rao, chief economist, Yes Bank was quoted as saying. 
 
The economy witnessed a growth rate of 6.3 per cent in the July-September quarter of 2017-18, reversing a trend of five quarters of slowing growth. 
 
Manufacturing activity expanded at its fastest pace in 13 months in November. 
 
The Nikkei Indian Manufacturing Purchasing Managers’ Index rose to 52.6 in November compared with  50.3 a month earlier.
 
The Consumer Price Index (CPI) rose 3.58 per cent in October year-on-year. 
 
The inflation is expected to touch about 4.5 per cent by March this fiscal. 
 
Source: ET

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