The Reserve Bank of India’s upcoming policy meeting has become the biggest event for markets.
The current repo rate stands at 5.50%, which is already considered accommodative for growth.
Inflation has eased in recent months, but global crude oil prices remain a potential risk.
Growth momentum, however, is still uneven across different sectors of the economy.
Some institutions like Citi, Barclays, and SBI hinted there may even be room for a cut.
Markets are uncertain because the RBI has often surprised with bold policy steps before.
Bond yields have remained range-bound as traders wait for a clear signal.
The decision will likely influence both equities and currency movement this week.
Investors are staying cautious but hopeful for supportive policy action from RBI.