The RBI is expected to keep the steady hand at its meeting next week, according to Economist at UOB Group Lee Sue Ann.

Key Quotes

“The decelerating COVID-19 infections in India, coupled with the gradual increase in vaccination rate, are key evidence of a COVID-19-resilient environment. We thus believe that the RBI will likely floor its policy-rate at 4.0% for the rest of this year.

”Owing to the better prognosis thus far, we pencil a rate hike of 25 basis points in the fourth quarter of next year.”