Mumbai: Even after a positive surprise on the retail inflation front, analysts today said they expect Reserve Bank Governor Raghuram Rajan to hold the key rates in the forthcoming policy announcement on April 1.

“We expect RBI to maintain interest rates status quo in the policy announcement next month to ensure that the decline in inflation continues before the monetary policy looks to promote growth,” ratings agency Care said in a note.

Foreign brokerage HSBC said emergence of pleasing data and the likelihood of RBI holding its key rate on April 1, should not lead to believing that the rate tightening cycle is over.

Official data released yesterday showed the consumer price inflation cooled down to 8.1 per cent for February as against the 8.79 per cent in January, while the index of industrial production came to a positive side in January, at 0.1 per cent after three months of continous decline.

Under Rajan, the Reserve Bank has raised rates three times or 75 bps to 8 per cent with an eye on the inflation number, the last one in January.

The central bank has also made its intentions of focussing more on the CPI number very clear. It has also set itself a target of bringing down the CPI to 8 per cent by January 2015 and get it down further to 6 per cent by 2016.

“Retail inflation is now already close to the RBI’s target of 8 per cent for January 2015. Sustaining it at these levels however, will be crucial given the upward momentum in inflation of certain food categories,” rating agency Crisil said in a note.

On the future trajectory of the monetary policy, brokerage Credit Suisse said it expects no major actions till the Septemeber quarter, where the RBI will do a 0.25 per cent hike in the repo rate and follow it up with similar actions in the December and March quarters with theJanuary 2016 target of cooling CPI inflation down to 6 per cent in mind.

Its peer BNP Paribas also said even though there may have been some respite on the price rise front, the risks from inflation continue being elevated and the RBI will “retain a tightening bias for the foreseeable future.”

Court frames charges against Saif, two friends in assault case

Mumbai: Two years after actor Saif Ali Khan allegedly assaulted a South-Africa based businessman and his father-in-law at a Colaba hotel, a local court today framed charges against Saif and his two friends.

“The court today framed charges against Khan and his two friends – Shakeel Ladak and Bilal Amrohi – under section 325 (assault) and 34 (common intention) of the Indian Penal Code,” public prosecutor Wajeed Sheikh said.

However, the trio pleaded not guilty after the metropolitan court read out the charges to them.

Saif and his friends had been arrested following a complaint filed by NRI businessman Iqbal Mir Sharma after the two allegedly got into a fight at the Wasabi restaurant in Taj Hotel on February 22, 2012.

The trio was later released on bail.

Saif, 42, was accompanied by his wife Kareena Kapoor, her sister Karishma Kapoor, Malaika Arora Khan, Amrita Arora and some male friends at the hotel when the brawl broke out.

According to police, when Sharma protested the raucous chatter of the actor and his friends, Saif allegedly threatened them and subsequently punched Sharma in the nose, fracturing it.

The NRI businessman had also accused Saif and his friends of hitting his father-in-law Raman Patel.

However, Saif had maintained that Sharma made provocative statements and rather used abusive language against the women accompanying him and this led to the ruckus.

The police had filed a charge sheet against the trio on December 21, 2012.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal