RBI may keep call rates and treps below the repo

"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 Call rate averaged 5% in February, while its daily average is 5.29% in March so far, as liquidity is tight due to quarterly advance tax outflows and sustained currency-market interventions by RBI in the foreign exchange market. The po ...