RBI expected to hold rates this week as Covid cases rise

The Reserve Bank of India's Monetary Policy Committee is expected to hold key interest rates this week and maintain an accommodative stance. However, the central bank may revise its inflation projections higher.

The Reserve Bank of India is widely expected to keep key interest steady on Wednesday amid a surge in COVID-19 cases in the country, but may revise its inflation projections higher. In a Reuters poll, 65 of 66 economists surveyed said the RBI's monetary policy committee (MPC) will leave rates unchanged. "We expect the MPC to come up with another dovish pause on Wednesday, especially with Covid-19 cases rising," said Indranil Sengupta, an economist at Bank of America Securities.