RBI Monetary Policy - Suvodeep Rakshit, Senior Economist at Kotak Institutional Equities

"We maintain that the RBI will likely remain on a pause as it continues to watch out for the evolving inflationary conditions. We believe that a case for a rate cut will be strengthened with downside surprise to the RBI's 2HFY18 inflation expectations. The RBI acknowledged that the inflation trajectory is much softer than the earlier estimates. While it maintains a cautious note, it clearly expects inflation to glide down towards the 4% mark by March 2018 based on current dynamics. We believe that the tone of the communique was much less hawkish than the April policy but do not expect any immediate cut in the repo rate."

Source : Equity Bulls

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