After five consecutive cuts in interest rates this year, the six-member Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, unanimously voted to hold the key repo rate at 5.15 percent and reverse repo rate at 4.90 percent.
India's GDP growth is expected to pick up again to 7.6 percent next year thanks to improving consumption, timely rains, higher public sector spending, and better export growth, says a DBS report.
According to the global financial services major, India continues to fare relatively well despite a challenging global backdrop, however, domestically certain pockets remained weak.
According to the global financial services major, foreign equity investors have made year-to-date inflows of USD 2.2 billion, but this optimism was not shared by debt investors, who pared holdings by USD 620 million.
The Reserve Bank's window for another rate cut will open up only in the second half of this year, says a DBS report.
India is expected to clock 7.4 per cent growth rate this fiscal with a downside risk amid weak exports, slow pace of structural reforms and investment spending, says a DBS report.