Reserve Bank may keep policy rate unchanged in its upcoming monetary policy review on Tuesday even as the finance minister and industry clamoured for the rate cut to prop the economy after GDP growth slipped to 5.3 per cent in the second quarter of current fiscal.
At the same time, inflation has hit multi-year low making a case for the rate cut.
“The fact of matter is that all the parameters are indicating that there will be further fall in inflation. Between November and January with the base effect it might go up a little bit. But by March it will be well below whatever the glide path that is indicated by the RBI,” SBI chairperson Arundhati Bhattacharya said.