With Reserve Bank Governor Shaktikanta Das set to announce the Monetary Policy, all eyes are on the review of key rates. The Monetary Policy Committee, which has six memebrs, is holding its third meeting in the ongoing fiscal from August 6 to 8.
Analyst believe the rate-setting panel will keep the rates unchanged as it hopes to reach its 4 per cent inflation target. The benchmark report rates are expected to be unchanged at 6.5 per cent and continue the existing 'withdrawal of accommodation' policy stance.
The MPC will take into account key issues like the Middle East tensions, US Fed rate cut expectations, monsoon impact on crops, core inflation, food inflation, credit growth, and OMO sales among others.
Investors and economists will be keeping an eye on GDP growth estimates and inflation forecast during the policy announcement, which experts believe will remain unchanged.
The rates have remained unchanged for the last 18 months.
