RBI Monetary Policy Live Updates: What to expect from RBI's policy review today

The Reserve Bank of India is widely expected to hold the repo rate at 4.00% today, but its views on the current liquidity glut are keenly awaited with analysts eyeing possible measures to soak up excess liquidity.

With headline inflation remaining above 7% in October for a second straight month and with nascent signs of an economic recovery, all 53 analysts and economists in a Reuters poll last week expected the central bank to stay on hold today.

The RBI's rumoured buying of USD/INR in recent months to absorb sizable inflows and ensure the rupee remains export-competitive has led to an excess of liquidity in the system.

RBI statement soon

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has been deliberating since Wednesday amid expectations of status quo on the benchmark lending rates in view of high retail inflation.

The recovery in the Indian services sector was sustained in November as new work orders supported business activity growth and the first rise in employment in nine months, a monthly survey said on Thursday.

PM Narendra Modi to deliver keynote address at the IIT-2020 Global Summit, organised by Pan-IIT USA at 09:30 PM today

RBI's policy statement at 10 am today

The Reserve Bank is likely to keep the benchmark interest rate unchanged at its bi-monthly monetary policy review outcome to be announced today, but may revise growth estimates in view of the September quarter GDP turning out to be better than RBI's earlier projections.

Focus of the bi-monthly review of the credit policy by the RBI monetary policy committee is expected to be ensuring adequate liquidity into the system, retaining the policy stance as accommodative

- Assocham

As RBI Governor Shaktikanta Das unveils the decision of the RBI-MPC, the challenges of striking a balance between increased and continuous requirement of high liquidity, and taming retail inflation would be shared, said the industry body.

A report by Yes Bank said though India has officially entered into a technical recession with second-quarter GDP print, "we believe that we are past the nadir in India's growth trajectory. The sharper than expected recovery in key economic indicators is suggestive of this view".

The rupee weakened by another 12 paise to end at 73.93 against the US dollar on Thursday as investors remained cautious ahead of the RBI policy meet outcome.