RBI Monetary Policy: Central bank likely to hold rate

This cautious approach is driven by various uncertainties, including climate conditions, commodity prices, and global risk factors, according to economists from Yes Bank

There is an expectation that the RBI will maintain a somewhat hawkish stance on inflation dynamics.

The Reserve Bank of India's (RBI) Monetary Policy Committee is expected to maintain key interest rates in its upcoming decision but maintain focus on inflation amid rising global crude oil prices and sustained economic growth.

In a survey of 71 economists conducted by news agency Reuters in late September, all but one anticipated that the RBI would keep its key repo rate at 6.50 per cent during the October 4-6 meeting, with only one economist expecting a 25 basis point hike.

While core retail prices are on a downward trajectory and the worst of inflation may be in the past, there is an expectation that the RBI will maintain a somewhat hawkish stance on inflation dynamics.

This cautious approach is driven by various uncertainties, including climate conditions, commodity prices, and global risk factors, according to economists from Yes Bank.