NEW DELHI: Financial market participants in India will closely monitor the outcome and the policy stance of the central bank, the Reserve Bank of India (RBI), to be announced at 10 am Friday (today), for fresh cues.
As things stand, the monetary policy committee is most likely to maintain the status quo.
The three-day bi-monthly monetary policy committee (MPC) meeting of the RBI began on Wednesday.
The RBI typically conducts six bimonthly meetings in a financial year, where it deliberates interest rates, money supply, inflation outlook, and various macroeconomic indicators.
For the fourth straight occasion, the monetary policy committee, through its October review meeting, unanimously decided to keep the policy repo rate unchanged at 6.5 per cent, thus maintaining the status quo. In its past four meetings, it held the repo rate unchanged at 6.5 per cent.
The repo rate is the rate of interest at which RBI lends to other banks.
While deliberating the policy statement in October, RBI Governor Shaktikanta Das said the central bank was concerned and it had identified high inflation as a major risk to macroeconomic stability and sustainable growth.
Das had reiterated that the monetary policy committee is committed to aligning India's headline inflation at 4 per cent level.