Central Banks

RBI May Pause Again With Markets Watching for Stance Shift

  • Central bank to hold benchmark rates for a second meeting
  • Policy language assumes importance to gauge pivot to rate cut

Shaktikanta Das

Photographer: Indranil Aditya/Bloomberg
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The Reserve Bank of India is expected to pause for a second straight meeting as inflation eases and market watchers are looking for cues of a shift in policy stance to support growth in Asia’s third largest economy.

All 40 economists in a Bloomberg survey forecast the Indian central bank will keep the repurchase rate unchanged at 6.50% on Thursday, signaling that inflation could cool further in the months ahead. Consumer price growth slowed to 18-month low of 4.7%, edging toward the midpoint of the RBI’s 2%-6% target range.