RBI likely to pause rate this fiscal, take call on liquidity surplus

Economists say inflation would average above 6 per cent this fiscal, and is unlikely to come down below 5 per cent before March.

Economists and treasurers expect a rate pause in the monetary policy on December 4, and the Reserve Bank’s ‘accommodative’ stance to continue, even as there could be some hint of withdrawal of excess liquidity from the system.  

In a Business Standard poll of 12 economists and bond market participants, the unanimous view was that the six-member monetary policy committee (MPC) will vote to keep the repo rate unchanged at 4 per cent. 

And, this status quo is here to stay for a long time, they felt. This, despite the fact that retail inflation in October came at 7.61 per cent, way above