RBI To Hold Key Rates In Monetary Policy Review, Guidance On Liquidity Crucial

All 60 forecasters in a Reuters poll said they see no change in the repo rate on October 8 and the RBI is only expected to raise repo rates in April-June 2022

The monetary policy committee is widely expected to keep the repo rate unchanged to support recovering growth on Friday, but some analysts have cited a slim chance of the Reserve Bank of India delivering a token increase in the reverse repo rate.

All 60 forecasters in a Reuters poll said they see no change in the repo rate on Oct. 8. and though price pressures have soared due to rising fuel prices, the RBI is only expected to raise the repo rate in April-June 2022.

"At the upcoming policy meet, we do not expect surprises on the policy rate front at a time when the economy is expected to see the much-awaited boost in consumption triggered by festive demand," Madan Sabnavis, chief economist at CARE ratings wrote.

"While the possibility of increasing the reverse repo rate cannot be ruled out, it looks unlikely to be a part of this statement," he added.