Emerging-market selloff may force RBI to hold interest rates in MPC meet

Indian rupee is down about 5% against the dollar this year and yields have spiked on government and corporate bonds

An emerging-market selloff that’s hit India hard presents its central bank with a choice: hold interest rates steady to keep the economy motoring or follow the example of the Philippines and Indonesia by raising to stem market pressure.

The nation’s currency is down about 5 per cent against the dollar this year and yields have spiked on government and corporate bonds. While those moves would argue for a rate increase, most economists aren’t convinced it will come on Wednesday. Of the 35 analysts surveyed by Bloomberg, 25 predict the monetary policy panel will hold the benchmark repurchase rate at 6 per