The RBI meets for the mid-quarter credit policy review at noon today. The RBI has raised interest rates 11 times in the last 18 months. Growth has slowed while inflation has inched nearer to double-digits.
Given that inflation is still very much on the central banks mind, the market does not expect a pause but a 25 basis points rate hike. And Leif Eskesen, Chief Economist-India & ASEAN, HSBC Global Research agrees with what market seems to have priced in today.
The last inflation number that came out showed that inflation prices have not abated which would be highlighted in the statement.
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