RBI Likely to Hold Repo Rate at 5.25% on Friday as 9 of 11 Economists Predict Status Quo

According to a Wall Street Journal survey, India's central bank is likely to hold its policy repo rate steady at 5.25% on Friday, with 9 of 11 surveyed economists predicting no change. Two economists expect a 25 basis point rate hike to 5.50%.

Economists cited rising rupee depreciation pressure and inflation risks as rationales for potential tightening. However, the RBI previously indicated a preference to wait for second-round inflation effects before acting, with rate hikes positioned as a last resort for currency defense.