The Reserve Bank of India (RBI) is unlikely to lower interest rates during its annual monetary policy review on Tuesday.
According to reports, this is because of food prices rising due to unseasonal rains across the country.
The RBI, according to the reports, however, may consider a rate cut in the future should prices come down.
RBI had lowered its repo rate by 25 basis points to 7.5 percent on March 4, after a similar cut on January 15, on the back of softening inflation and the government's commitment to continue with the fiscal consolidation programme.
Both rate cuts were announced outside the central bank's regular policy review.
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Unseasonal rains have had an adverse impact on key Rabi (winter) crops such as wheat, oilseeds and pulses.
As per an ASSOCHAM study, the Rabi crop has been damaged by at least 25-30 percent in terms of yield.
