India: RBI seen holding rates – UOB

Economist at UOB Group Lee Sue Ann suggests the Reserve Bank of India (RBI) could leave the key rates unchanged at its meeting on Wednesday.

Key Quotes

“Given the strong fiscal response seen in the recent Union Budget FY2021/22, we believe that India’s policymakers will relt on the fiscal approach to lift their economy out from the unprecedented slowdown.”

“Coupled with a better macroeconomic backdrop, we expect RBI to keep its policy rate unchanged for the whole of 2021.”