RBI likely to revise inflation outlook as it extends rate pause: Economists

Expectations are for the RBI to revive open-market operations or resort to Operation Twists, wherein it buys longer bonds and sells shorter-dated notes, to support the market amid record debt supply

India’s central bank will likely raise its inflation outlook this week to reflect costlier oil, but leave borrowing costs steady and tap other policy tools it’s used before to support an economy facing new risks to recovery. 
 

All economists surveyed by Bloomberg expect the Reserve Bank of India’s six-member monetary policy committee to hold the benchmark repurchase rate at 4% Friday, while just three out of 27 polled as of Wednesday see a hike in the reverse repurchase rate.

That will shift the focus to any adjustments in language in the policy statement, as investors look for signs of normalizing