Weakness in the rupee does not offer a sufficient alibi for a rate hike and the Reserve Bank may go for a status quo at the policy review next month, a Japanese brokerage said Friday.
The markets have priced in tightening as well, but it is unlikely to materialise, Nomura said in a report.
"Because of the RBIs inflation-targeting mandate, currency weakness in itself may not provide a sufficiently strong argument for rate hikes," its economists said.
