In the upcoming monetary policy on February 3, the RBI is likely to maintain status quo with a dovish stance, said Edelweiss Research in its report.
This expectation is based on central bank's guidance in its last policy document that further easing is dependent on incoming data, particularly with regards to inflation and fiscal stance. Since no new data has been released since then, another rate cut at the next meeting is quite unlikely, it said.
"However, we remain convinced that there exists scope for 100-125bps easing by March 2016 based on our real rates and yield curve analysis. Thus, a pause in February will only be temporary," it added.
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