The Reserve Bank of India will keep its key interest rate unchanged at 5.25% in June, according to most economists in a Reuters poll, although a majority now expect at least one increase by year-end due to risks from high oil prices and pressure on the rupee from weak capital inflows.
India's still-benign inflation at 3.48% in April, below the RBI's 4% medium-term target for over a year, gives the central bank scant reason to act urgently.
