Five out of six committee members on Thursday voted to keep the policy repurchase rate unchanged at 6.5%, and stance unchanged at withdrawal of accommodation.
Liquidity conditions have remained consistently in deficit since the December meeting of RBI s rate-setting panel The Central bank is also likely to provide a GDP growth forecast for FY25, say economists
The economists also expect the MPC to reiterate its commitment to the central bank s 4% headline inflation target and keep inflation and GDP growth forecasts unchanged for FY24.
RBI governor Shaktikanta Das was quoted as saying that the monetary policy has to be actively disinflationary, and any shift in stance at this point would be premature and risky.
The rupee settled at 83.28 per US dollar, a fresh closing low. The closing level was the same as the intraday low on Monday, just shy of the all-time intraday low of 83.29, a level seen in October 2022. On Friday, the rupee had closed at 83.26. In 2023, the rupee has shed 0.7% versus the dollar.