RBI seen holding rates even as retail prices top inflation target

Consumer prices rising above the Reserve Bank of India’s inflation target for the second straight month may have raised fears of a policy rate increase, but many economists expect the central bank to maintain its accommodative stance to support economic recovery.

They cited the easing of commodity prices from their peaks and the RBI’s high inflation projections for the current quarter to insist that a policy rate hike at this juncture appears remote.