New Delhi: The Reserve Bank of India (RBI) is likely to keep the repo rate unchanged at 5.25% at the upcoming Monetary Policy Committee (MPC) meeting, with policymakers expected to adopt a wait-and-watch approach amid heightened uncertainty over inflation, growth and global conditions, according to a research report by Nuvama.
While a rate hike is unlikely, the RBI's guidance on the future policy path is expected to be closely watched, particularly its assessment of inflation risks, liquidity conditions and the external environment, the report said. The central bank may prioritise liquidity management over further rate action in the near term, while retaining a calibrated and flexible policy approach.
