RBI Expected to Maintain Key Rates, More Confident on Inflation Goal

The Reserve Bank of India (RBI) is anticipated to keep its key interest rates unchanged in the upcoming policy review, according to HSBC. The RBI may maintain its current stance of ‘withdrawal of accommodation’ while showing increased confidence in achieving its 4% inflation target. HSBC will monitor the RBI’s tone on inflation, changes in growth or inflation forecasts, and commentary on open market operations. For investors, the RBI’s stance and inflation outlook could influence market expectations and financial conditions.