RBI may wait and watch, say economists; status quo likely on all fronts

Bond market participants are factoring in a reverse repo hike

The monetary policy on December 8 will be followed widely by analysts, for it may reveal the Reserve Bank of India’s (RBI’s) perception of a “behind the curve” fear chasing major global central banks, which no longer see inflation being “transitory”, while economic uncertainties are rising amid a new variant of coronavirus.

In a Business Standard poll of 16 economists and bond market experts, the consensus emerged of a status quo policy on the repo rate at 4 per cent, and the stance being “accommodative”.

However, analysts differ on the prospect of a reverse repo rate hike, now at 3.35