Why RBI is likely to hold repo rates on Dec 2

The RBI will indicate it is better positioned to achieve Consumer Price Index inflation forecast of 6 per cent for January 2016, in its policy review, says CLSA.

This will be a change compared to the indication of upside risk to that forecast in the previous policy statement.

CLSA adds rates are widely expected to be kept on hold.

RBI to leave repo rate on hold at December 2 meeting, according to a Reuters poll.

Indian markets pricing in a rate cut despite wary RBI.

CLSA says government actions to facilitate investment more important for revival than a token monetary easing.

IT adds pick-up in growth in the near term will be gradual and uneven.

CLSA notes the divergence between the Nifty and the real economy will persist for some more time.