Experts predict that the Reserve Bank of India (RBI) will likely keep its policy rates unchanged during its upcoming bi-monthly monetary policy review meeting in October. This would mark the fourth consecutive time that the RBI has maintained the same interest rates.
The decision is primarily driven by persistently high retail inflation and global factors such as elevated crude oil prices. In August, the Consumer Price Index (CPI)-based retail inflation slightly eased but remained above the RBI's comfort level of 6 percent. The central bank's mandate is to keep inflation at 4 percent with a 2 percent margin on either side. While there is less concern about economic growth, uncertainties related to crop yields and food prices are influencing the RBI's stance.