India’s central bank is expected keep its benchmark rate and policy stance unchanged for a third consecutive meeting to support growth while food inflation accelerates in Asia’s third largest economy.
All 42 economists in a Bloomberg survey forecast the Reserve Bank of India’s six-member monetary policy committee will keep the repurchase rate unchanged at 6.50% on Thursday. Policymakers are keeping an eye on the likely occurrence of El Nino, which brings drier weather conditions and can affect crop yields.
The RBI is likely to retain its “withdrawal of accommodation” stance introduced in April last year, according to 19 of 20 economists who shared their forecast on the stance, only one economist expected the change in language.
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