RBI monetary policy today: Key things to watch out for
RBI monetary policy, The Reserve Bank of India will probably keep interest rates unchanged on Wednesday, with the decision itself likely to be a sideshow to Governor Urjit Patel’s press conference—his first since an acrimonious debate with the government over the central bank’s autonomy.
Investors are watching how Patel will respond to the state’s push for more say over the central bank’s role. Economic Secretary Subhash Chandra Garg, a government representative on the RBI’s board, has called for the bank’s governance structure to be changed and panels set up to oversee its functioning.
After raising interest rates twice this year, the RBI will probably keep its repurchase rate unchanged at 6.5 percent, according to 48 of 52 economists surveyed by Bloomberg. That decision is bound to appease the government, which is seeking more support for banks to continue lending.
The RBI will issue a statement at 2:30 p.m. in Mumbai followed by a press conference by Patel 15 minutes later. Here’s a look at what else to watch out for: