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India’s RBI to Hold Rates Amid Inflation: Decision Guide

  • Activity and demand are recovering slowly after lockdown
  • Headline inflation has stayed above the RBI’s target range
The Reserve Bank of India headquarters in Mumbai, India.

The Reserve Bank of India headquarters in Mumbai, India.

Photographer: Dhiraj Singh/Bloomberg
Updated on

India’s central bank will likely keep interest rates unchanged for a third straight meeting as inflation stays stubbornly high and signs appear of growth beginning to return to Asia’s third-largest economy.

The six-member Monetary Policy Committee is forecast to hold the benchmark repurchase rate at 4% Friday, according to all 30 economists surveyed by Bloomberg as of Thursday. A spike in consumer prices forced the panel to pause after cutting rates by 115 basis points this year, although it’s expected to conserve some ammunition to support growth by retaining an accommodative stance for the near future.