Further easing still likely as new MPC takes shape

After dragging its heels for several weeks, the government has finally appointed three new members to the RBI’s monetary policy committee (MPC). Not a great deal is known about their views on monetary policy but, given that the MPC tends to follow the lead of the governor, we don’t think their appointment will do much to move the needle. Rates are likely to be kept on hold at the conclusion of the rearranged policy meeting on Friday, but we remain non-consensus in expecting a resumption of the easing cycle over the coming months.