RBI will acknowledge improved outlook for inflation: CLSA

RBI will indicate it is better positioned to achieve CPI inflation forecast of 6 per cent for January 2016, CLSA said in its policy review.

This will be a change compared to the indication of upside risk to that forecasted in the previous policy statement. Rates are widely expected to be kept on hold, it added. RBI is likely leave repo rate on hold at December 2 meeting, according to Poll

Indian markets are pricing in a rate cut despite RBI wary. CLSA said that the government actions to facilitate investment is more important for revival than a token monetary easing.

It added that the pick-up in growth in the near term will be gradual and uneven. It noted that the divergence between the NSE index and the real economy will persist for some more time.