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Emerging-market selloff may force RBI to hold interest rates in MPC meet

Indian rupee is down about 5% against the dollar this year and yields have spiked on government and corporate bonds

Photo: Reuters
Photo: Reuters

An emerging-market selloff that’s hit India hard presents its central bank with a choice: hold interest rates steady to keep the economy motoring or follow the example of the Philippines and Indonesia by raising to stem market pressure. The nation’s currency is down about 5 per cent against the dollar this year and yields have spiked on government and corporate bonds. While those moves would argue for a rate increase, most economists aren’t convinced it will come on Wednesday. Of the 35 analysts surveyed by Bloomberg, 25 predict the monetary policy panel will ...