Analysts believe that the Reserve Bank of India (RBI) might keep its key interest rates unchanged at its upcoming quarterly review next week.
A total of 20 economists surveyed by Reuters, 19 expect the RBI to keep its interest rates unchanged even as the industrialists are expecting the central bank to lose its tight control over the monetary position in the country.
Following weak industrial production data as well as a general slowdown in the economy, the government has urged the central bank of the country, the Reserve Bank of India (RBI) to consider reducing its interest rates during its policy review on July 31.
Planning Commission Deputy Chairman Montek Singh Ahluwalia had said that the low growth of industrial growth is not acceptable. Commerce and Industry Minister Anand Sharma said that the government will ask the central bank to reduce interest rates in its policy review.
Experts say that the IPP data as well as the June wholesale price inflation will help RBI make a decision on its key lending rates during its review on July 31.
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