RBI to keep rates on hold next week: Morgan Stanley

CPI has remained high,leading to 8220;elevated and sticky inflation expectations,8221; even as consumer prices could moderate going forward,Morgan Stanley says in a report dated Thursday.

High CPI will also adversely impact deposit growth and lead to high gold imports,the investment bank adds.

8220;Hence,we believe policy rate cuts will likely not be effective until we see meaningful deceleration in CPI inflation and improvement in deposit growth,8221; Morgan Stanley says.