RBI rate, stance to stay on pause: Poll

Inflation has quickened since June, particularly in vegetables

- Gopika Gopakumar

The Reserve Bank of India’s (RBI) monetary policy committee (MPC) is likely to leave interest rates and policy stance unchanged at its meeting this week, according to a Mint survey of 10 economists. The expected status quo will be in the backdrop of a sharp spike in vegetable prices, uneven monsoon and diverging monetary policies worldwide.

All economists expect MPC to keep the repo rate unchanged at 6.5% and retain the stance of withdrawal of accommodation. While the majority expects RBI to maintain a prolonged pause after the August policy, the market is pencilling in a 50% chance of 25 basis points (bps) hike over the next two RBI meetings.