Reserve Bank of India expected to hold rates this week

The Reserve Bank of India (RBI) is expected to keep unchanged this week the broader interest rates and its accommodative monetary stance to nurture a fragile economic recovery amid the return of partial mobility curbs to contain the spread of the coronavirus. But investors would need clarity in communication from Governor Shaktikanta Das on his agenda for the bond markets, which have lately been roiled by hardening yields.
New curbs on businesses, potentially slowing economic activity, and a surge in commodity prices that could cause an inflationary spiral pose challenges to the Monetary Policy Committee (MPC), which has been tasked with keeping the Consumer Price Index (CPI) in the 2% to 6% range for another five years.