RBI Expected to Hold Interest Rates While Increasing Liquidity to Manage Inflation and Market Rates

The Reserve Bank of India (RBI) is expected to maintain its repo rate in the upcoming policy meeting amid rising inflation forecasts and evolving economic data. Economists anticipate the RBI will focus on injecting additional liquidity through open market operations to address tight system liquidity and rising short-term borrowing costs, including higher rates on certificates of deposit and commercial paper. These measures aim to stabilize financial conditions amid subdued government spending and increased credit demand.