India's Central Bank Tipped to Stand Pat, WSJ Poll Shows

Dow Jones
08/04

1011 GMT - India's central bank is likely to keep its policy repo rate at 5.25% on Wednesday, according to 12 out of 13 economists polled by The Wall Street Journal. "Rising inflation has reduced the scope for policymakers to remain on the sidelines, while the renewed weakness in the rupee will be a factor too," said Shilan Shah of Capital Economics, who expects the Reserve Bank of India to raise its repo rate by 25 bps to 5.50%. However, HSBC economists believe that India is in a "sweet spot" given better growth, inflation and external finances data recently, and that RBI may prefer to see firmer inflation prints before making a move.

 

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