RBI’s policy review meet on hold

As per the RBI’s perspective, the GDP data are disappointing, but the current slowdown is largely due to GST, which should be seen as transitory as mentioned by Nomura in a report, adding that the cash-intensive sectors like trade, transportation and construction are rebounding. The apex bank is likely to stay on hold in its policy review meet in October and instead focus on banking resolution and liquidity management, despite June quarter ‘disappointing’ GDP data.