RBI maintained status quo on rates - BBH

Analysts at BBH note that the Reserve Bank of India kept all rates steady today, as expected. 

Key Quotes

“CPI rose 5.2% y/y in December, which is in the upper end of the 2-6% target range.  The RBI has signaled no further easing, and this will likely be reinforced by the government’s expansionary fiscal policy planned for FY2018/19.  Indeed, the bank warned that higher government spending could feed into inflation that is already forecast to quicken.  As such, we think rate hikes are becoming more likely.  The vote to hold was 5-1, with the lone dissenter seeking hike.”