RBI in focus as India looks towards bigger borrowing: Decision Guide

The benchmark repurchase rate will be maintained at 4% Friday, according to 24 of the 32 economists in a Bloomberg survey, although cooling inflation has stoked expectations for a rate cut

Most economists expect India’s central bank will hold interest rates for a fourth straight meeting this week as attention turns to how it’ll react to an expansionary budget and a massive government debt plan.
 

Finance Minister Nirmala Sitharaman’s annual budget on Feb. 1 emphasised spending to revive growth in an economy hurt by the coronavirus pandemic. That would give some comfort to the Reserve Bank of India, which did most of the heavy lifting in the past year through 115 basis points of interest-rate cuts and ensuring liquidity in the financial system.

The benchmark repurchase rate will be maintained at 4