Status quo likely in RBI policy

Central bank hiked repo rate twice by 25 bps each in September and October last year

The Reserve Bank of India (RBI) is expected to keep interest rate as well as the cash reserve ratio (CRR) unchanged during the third quarter review of monetary policy tomorrow as inflation has softened in December.

After hiking repo rate twice – by 25 bps each – in September and October, Raghuram Rajan kept policy rate unchanged during the December policy citing more clarity on inflation trajectory amid weak growth.

The policy will be announced at 11 am along with the macroeconomic and monetary development report.