RBI unlikely to change rates on Tuesday: CNBC-TV18 poll

Ahead of the Reserve Bank of India’s monetary policy on Tuesday, a CNBC-TV18 poll shows that the outgoing RBI Governor Raghuram Rajan is unlikely to cut interest rates. Markets, however, are going to keep an eye out for the central bank’s stance on liquidity, reports CNBC-TV18's Ekta Batra.

According to the CNBC-TV18 poll, 95 percent expect repo rate to remain unchanged, while 5 percent expect a 25 basis point rate cut. Similary, 90 percent expect GDP forecast for FY17 to remain unchanged at 7.6 percent, while 10 percent see GDP forecast to be over 7.6 percent.

However, 70 percent expect incremental rate cut of 25 bps in 2016, while 10 percent expect a 50 bps cut and 20 percent expect no cuts at all.

According to a poll question on RBI’s action on liquidity, 60 percent are of the view that ‘Keep At Current Excess; 20 percent think RBI should ‘Lower It to Balance’, while 10 percent each think RBI should ‘Keep Slight Deficit’ or  ‘Increase The Excess’.