Monetary policy review: RBI may keep policy rates unchanged on December 5

The Reserve Bank of India (RBI) is expected to keep policy rates unchanged in its December 5 monetary policy review, and most analysts expect it to exercise restraint in this financial year.

Oil prices have softened a bit, and will pull down inflation in the coming months. Rupee has strengthened and bonds yields are down and foreign investors seem to be coming back, sensing a better economic prospect on the back of low oil prices.

Here are the few factors that the six-member monetary policy committee would be examining carefully before taking a policy call.