Key RBI repo rate decision today, tone and forward guidance to be watched
NEW DELHI: The RBI Monetary Policy Committee (MPC) is set to announce its decision on the key policy rate on Friday, with economists expecting Central Bank to take a pause in February after the December 2025 rate cut -- with tone and forward guidance to be closely watched.
The three-day RBI MPC, which began on Wednesday, is likely to signal a nimble, forward-looking response framework amid firm growth and easing external risks post US trade deal, according to Radhika Rao, Executive Director and Senior Economist, DBS Bank.
“Despite inflation moving off lows and rupee pressures persisting, further rate cuts may be avoided given deposit mobilisation challenges and risk of portfolio outflows,” Rao said.
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