“From a macroeconomic perspective, growth continues to be a challenge. GDP for FY20 is likely to be around 4.8%-5% and it is estimated that FY’21 is likely to see growth in the 5.5% to 6% range. Recent high frequency indicators show some green shoots. However, need to see how the growth trajectory pans out. The Union Budget has estimated a higher fiscal deficit of 3.8% for this year and a glide path to 3.5%. Inflation is likely to trend at a level higher than RBI’s 4% to 4.5% target this quarter. Against this backdrop, the RBI is likely to maintain status quo on rates as well as its monetary policy stance. They are likely to continue an accommodative stance to support growth."