The Reserve Bank of India will hold its next policy review early October.
Markets are closely watching hints from RBI officials ahead of the meetin
g.
September 24 updates suggested RBI will remain cautious on inflation.
Despite stable food prices, global commodity volatility remains a risk factor..
Analysts expect RBI to maintain current repo rate at 6.5 percent.
Bond yields eased slightly as traders priced in a pause in rate h
ikes.
Banking stocks reacted positively to signals of policy stability.
Some experts believe RBI may shift tone toward growth in coming months.
The rupee’s strength could also help inflation remain under control.
Investors await RBI’s statement for clarity on liquidity and growth
outlook.