INSUBCONTINENT EXCLUSIVE:
By Anirban NagGoldman Sachs Group Inc
for monetary policy easing.
The Wall Street bank said lower inflation projections, and expectations of a slower pace of United States
policy rate hikes prompted it to shift its call from a previous forecast of no change in February.
The Goldman analysts, led by Chief India
Economist Prachi Mishra, still expect Reserve Bank of India to move back to a tightening mode in second half of 2019 as Federal Reserve
continues to hike, and food inflation begins to pick up
in a note.
The RBI adopted a hawkish policy stance in October, but is widely expected to drop that for a neutral bias at its Feb
7 meeting as headline inflation consistently undershoots projections and economic growth slows
who chairs his first Monetary Policy Committee meeting next month, said on Friday that while food inflation had turned negative since
still a significant possibility that RBI could keep rate on hold next month as policy makers gauge progress on fiscal consolidation in
The market is pricing in a 100 percent probability of at least a 25 basis points rate cut by June, it said.
