Market sees RBI pausing rates for long as retail inflation hits 7.35%

Experts rule out rate cut till April, saying it'll take time for vegetable prices to fall

It’s a long hiatus in rate cut for the monetary policy committee (MPC) of the Reserve Bank of India (RBI) after the surprise headline inflation print at 7.35 per cent, way above the central bank’s target of keeping the number limited between 2 and 6 per cent. 

The Monetary Policy Committee (MPC) under RBI Governor Shaktikanta Das cut policy rate by 135 basis points since February before it decided to take a pause in December. Now, economists and the bond market participants say such pause would be extended for sure in February, as well as in April policy, as it will