RBI likely to keep interest rates unchanged in upcoming policy review

The Reserve Bank is likely to keep interest rates unchanged in the forthcoming bimonthly monetary policy review in view of the rising retail inflation driven mainly by supply side issues, experts say.

RBI Governor Shaktikanta Das had earlier said although there was headroom for further monetary policy action, it was important to keep “our arsenal dry and use it judiciously.” The six-member Monetary Policy Committee (MPC) headed by RBI Governor is scheduled to meet for three days starting September 29. The resolution of the MPC would be announced on October 1.

In its last MPC meeting in August, RBI kept