RBI likely to hold rates as inflation persists

India’s central bank, the Reserve Bank of India (RBI), is expected to keep its key interest rate unchanged at 6.5% for the fourth consecutive time, according to a Bloomberg survey. Inflation remains above the RBI’s target range of 4%, and the RBI is likely to maintain a hawkish policy stance. The RBI may focus on liquidity management to control inflation pressures, and bond traders will be watching for any signals regarding liquidity.