Mumbai: The Reserve Bank of India (RBI) will seek to keep overnight rates – call and treps – below the policy repo rate to boost growth amid an increased threat of imported inflation, economists said. That means policymakers may look past immediate inflation prints, which are likely to be elevated, while keeping rates unchanged, they said.Monetary policy has to lean against this growth negative situation that we are in and they (RBI) have to be countercyclical. If monetary policy is tightened in response to a supply shock, it will only add to downside risk to growth,” said Gaura Sengupta, chief economist at IDFC First Bank.
