According to a poll conducted by Reuters, participants expect the Reserve Bank of India to keep its repo rate unchanged at 8 percent when it meets tomorrow. The RBI is of the premise that unless the government reduces its fiscal deficit, a rate cut in the benchmark rates will not be of much effect in the near period. Lack of supply side solutions to tackling food supply could result in higher inflation. Lack of adequate monsoons would also contribute to the rise in inflation.
Categories: General News