RBI’s monetary policy statement suggests that rates will remain on hold in the foreseeable future. Photo: Pradeep Gaur/MintAs was widely expected by financial markets, the monetary policy committee of the Reserve Bank of India on Wednesday decided to keep policy rates unchanged. While the committee acknowledged the output gap dynamics, it decided to keep the focus on inflation. It highlighted inflation risks emanating from factors such as the increase in house rent allowance and rising food and fuel prices. Overall, the statement suggests that rates will remain on hold in the foreseeable future.

Source: Mint December 06, 2017 20:37 UTC