Mumbai, Mar 26 (KNN) Rating agency ICRA has said that it expects Reserve Bank of India Governor Raghuram Rajan to hold the key rates on April-1 with inflation easing and rupee gaining against the dollar. 

“Consumer inflation eased to 8.1 per cent in February, close to the target of 8 per cent for the end of this calendar year as suggested by the Urjit Patel committee...Therefore, we expect a status quo on the policy rate in the upcoming policy review,” it said in a note.

ICRA yesterday said the unseasonal rains and hailstorms witnessed early March, which may put pressure on the inflation front, will not immediately have a bearing on the monetary policy. Additionally, there are also fears about a poor monsoon which can have a negative impact on the inflation trajectory, it added.     

“At this stage, these concerns may be premature to necessitate a monetary response and instead warrant action from various levels of government in terms of preparedness to deal with the eventuality of an unfavourable monsoon,” it said.

Meanwhile, “All offices of the Reserve Bank of India situated in Mumbai and Navi Mumbai will remain open for public transactions on Tuesday, April 01, 2014,” RBI said in a notification yesterday. (KNN/SD)