RBI unlikely to hike rates in rest of FY19

Mumbai, Oct 15  The Reserve Bank of India (RBI) is not expected to hike key lending rates in the current fiscal, a SBI Ecowrap report said on Saturday.

“CPI inflation marginally increased to 3.77 per cent in September 2018. Interestingly, on a m-o-m basis, rural food inflation has registered a decline, even as headline registered an increase,” the report said.

“Meanwhile, core CPI inflation declined to 5.81 per cent in September 2018 from 5.92 per cent in August 2018. We expect CPI for FY19 at 4.2 per cent. Our inflation trajectory projection makes us believe that rate hike is now off the table in FY19.”