Reserve Bank Governor Raghuram Rajan is widely expected to hold the key rates citing high inflation at the fourth bi-monthly monetary policy announcement on Tuesday, even though the pro-growth lobby has been wishing for a rate cut.
There's surplus liquidity and RBI, with plentiful forex reserves, is ready to pump whatever extra is needed
'Overall, the Indian economy is doing well.' 'Our economic fundamentals are strong and the early signs of recovery are sustainable.' 'This is positive for the market in the long run.'
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RBI is unlikely to stem the slide against the dollar as the greenback is rising rapidly against all currencies in the world.