RBI May Keep Rates Unchanged
NEW DELHI: The Reserve Bank of India (RBI) may maintain the status quo in the upcoming annual monetary policy on April 1 as retail inflation, especially in food items, is yet to show definite signs of moderation. "It would be quite a tough call for the RBI in the given scenario... I expect the RBI to maintain the status quo," HSBC country head Naina Lal Kidwai said.
RBI too had earlier indicated that its priority would be to bring down inflation, although India Inc has been putting pressure on the central bank to cut rates in order to boost growth.
In its third quarter review of monetary policy, 
the RBI in January raised the key repo rate by 0.25 percent to 8 percent in a bid to curb inflation.
Besides outlook on inflation, the central bank would also take into account the strengthening rupee and its impact on exports, she added.
Strengthening of the rupee against the dollar in the past few days following inflow of foreign currency has put pressure on exports. In addition, unseasonal rains during this month may stoke food inflation in the near term.
The RBI is scheduled to announce its annual monetary policy for 2014-15 on April 1.
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