Economists don’t see any change in repo rate or stance at RBI MPC next week

NEW DELHI: Economists on Friday said they do not expect any change in repo rate or stance this time amid geopolitical tensions, as the Reserve Bank of India (RBI) gears up for its monetary policy committee (MPC) meeting next week.

According to them, the tone will be cautious and what will be eagerly awaited is RBI's forecast of GDP and inflation under the prevailing uncertainty.

“We do not expect any measures for either liquidity or currency management as RBI will do whenever required as we have seen of late,” said Madan Sabnavis, Chief Economist, Bank of Baroda (BoB).

The three-day policy meeting is scheduled from April 6 to April 8 -- the first since the ongoing energy shock triggered by the West Asia conflict pushed Brent crude to average around $100 per barrel in March.

If inflation breaches the upper tolerance band of 6 per cent, the bank said there could be a rate hike towards the end of the year.