The Reserve Bank of India will maintain its interest rates until the second half in 2018 after it has been decided to be at a neutral position. On the contrary, less than one-fifth of the tally from the consensus chose to reduce the rates by the second quarter this year. The last time RBI has adjusted its policy rates lower by 1.75 percentage points over the span of two years since the global financial crisis. The central bank worries the risks possible inflicted by inflation that has made them shift from dovish to neutral stance regarding its monetary policies. Although, it may not get worse to such extent. Moreover, the rise in global crude oil prices also increased as much as 14 percent since late November has also added pressure to an abrupt shift of RBI regarding inflation concerns.
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