26-May-2026
Economy News
 
Pre-policy poll: RBI may favour forex, liquidity tools over rate hike
26-May-2026

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) is expected to announce additional measures to support the rupee while keeping interest rates unchanged at its June 5 policy meeting, according to a poll of 10 economists. Only two expect the central bank to raise rates. The RBI had left the repo rate unchanged at 5.25 per cent in April. Economists said the RBI is likely to rely more on liquidity and regulatory tools to ease pressure on the rupee rather than resorting immediately to rate hikes. They also pointed to slowing capital inflows—including weaker foreign direct investment (FDI), foreign portfolio investment (FPI) and external commercial borrowing (ECB) flows—as an additional source of stress for the currency.

News Source:- https://www.financialexpress.com/policy/economy/pre-policy-poll-rbi-may-favour-fx-liquidity-tools-over-rate-hikenbsp/4250947/?ref=hometop_hp