RBI Likely to Maintain Status Quo on Interest Rates

• The Reserve Bank of India (RBI) is expected to keep interest rates unchanged due to recent declines in inflation and escalating tensions in West Asia.
• The repo rate is likely to remain at 6.50%, marking the 10th consecutive bi-monthly statement with no change.
• Despite easing retail inflation, a potential rise in September may prevent the RBI from reducing interest rates.
• Geopolitical conflict in West Asia and its impact on global commodity prices is another factor influencing the decision.
• Analysts suggest the RBI's tolerance of surplus liquidity in the banking system indicates a willingness to accept slightly looser financial conditions while keeping the benchmark policy rate unchanged.

Source: Economic Times