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India’s Monetary Policy Seen Easy on Virus Surge

  • Partial Lockdown in Mumbai may hit economic growth prospects
  • Traders to gauge how RBI manages India’s large borrowing plan
A healthcare worker talks to people at a Covid-19 test site set-up outside a mall in Mumbai on March 31. 

A healthcare worker talks to people at a Covid-19 test site set-up outside a mall in Mumbai on March 31. 

Photographer: Dhiraj Singh/Bloomberg
Updated on

India’s monetary policy makers are poised to hold interest rates this week as the economy faces a renewed threat to growth from the pandemic, with new cases hitting a record.

All 30 economists surveyed by Bloomberg expect the six-member Monetary Policy Committee to keep the benchmark repurchase rate unchanged at 4% on April 7. Traders will watch for an explicit forward guidance from the Reserve Bank of India on how long the policy stance will stay accommodative and liquidity abundant despite stubborn inflation.