Central Banks
RBI Likely to Stay on Hold as Slim Modi Win Boosts Fiscal Risks
- Central bank may leave benchmark rate at 6.5% on Friday
- Liquidity management in focus ahead of bond index inclusion
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India’s central bank will likely keep interest rates on hold well into this year as a weak election win for Prime Minister Narendra Modi’s ruling party fans fears of fiscal populism.
The Reserve Bank of India will probably leave the benchmark rate at 6.5% for an eighth straight meeting on Friday, according to all 34 economists polled by Bloomberg. The six-member monetary policy committee is also expected to retain its stance.