New Delhi, Feb. 21 -- The chances of a monetary policy rate hike remain low due to benign core inflation, according to a report by ICICI Bank Global Markets.

The report said a prolonged pause in policy rates is expected through 2026-27, with the focus shifting to injecting durable liquidity to ensure effective monetary transmission, according to ANI.

Inflation Outlook Seen as Stable

The analysis noted that upside risks to inflation appear limited, citing the latest core inflation reading under the new Consumer Price Index (CPI) series. While the revised CPI showed an upward bias in food inflation, core inflation remained below expectations.

The report also stated that the recent rise in oil prices supports the case for a rate pause. A...