"The RBI policy announcement of a status quo was on expected lines. With the RBI clearly mentioning that inflation trajectory is evolving as per expectations there are reasons to believe that RBI will continue in an accommodative mode,"

SBI Chairperson Arundhati Bhattacharya said. According to HDFC Bank Chief Economist Abheek Barua: "The RBI is unlikely to go against the international trend of monetary easing and 0.25 per cent or possibly 0.50 per cent of policy rate cut continue to be our base-case scenario for2016."

It is expected most likely earliest date for easing, he said. RBI is scheduled to unveil first bi-monthly monetary policy for 2016-17 on April 5.

The central bank today left the key policy rate unchanged but indicated at accommodative stance, saying with inflation moving closer to the target there would be more room for rate
cut to support growth.

The repo or short-term lending rate remains unchanged at 6.75 per cent and the reverse repo rate at 5.75 per cent. On liquidity, Bhattacharya said there remains a concern with systemic liquidity deficit well in excess of the prescribed 1 per cent total deposits currently.

"With revised Liquidity Coverage Ratio kicking in and deposit growth lagging, RBI may have to be proactive in managing the liquidity deficit through tools available at its disposal," she said.

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