RBI's Balancing Act: Navigating Inflation and Growth

The Reserve Bank of India (RBI) is set to announce its decision on interest rates amid rising inflation and stagnating GDP growth. Despite high inflation rates, experts predict the central bank will maintain the current repo rate while potentially adjusting the cash reserve ratio to inject liquidity into the economy.

The Reserve Bank of India is poised to unveil its latest interest rate decision following a three-day meeting of its monetary policy panel. This announcement comes amid strong inflationary pressures and sluggish GDP growth.

Economists suggest the RBI will maintain the current short-term lending rate while potentially adjusting the cash reserve ratio to enhance liquidity, given the mixed economic signals.

The panel's meeting, chaired by Governor Shaktikanta Das, marks his final participation as governor before his term ends. Market experts anticipate no immediate rate cut, considering the complexities of managing inflation and encouraging growth.

(With inputs from agencies.)