RTTN:Indian Rupee Little Changed Against Dollar Ahead Of RBI Rate Decision
(RTTNews) - The Indian rupee was little changed against the US dollar in morning deals on Tuesday as traders await Reserve Bank of India's interest rate announcement at 1:30 am ET.
Most analysts are expecting the central bank to hike its repurchase rate by 25 basis points to 8.50 percent.
The RBI has hiked key policy rates 12 times since March 2010 to control inflationary pressure. However, that has not helped in bringing down inflation much.
The central bank hiked repo and reverse rates by 25 basis points each to 8.25 percent and 7.25 percent, respectively last month.
In its macroeconomic and monetary development report released yesterday, the central bank hinted at a pause in further rate hikes following 12 hikes in the last 19 months.
"The baseline inflation path still remains sticky and broadly unchanged from earlier projections. On the other hand, growth risks have increased on account of global headwinds and domestic factors. On current assessment, growth in 2011-12 is likely to moderate slightly from that projected earlier," the RBI said in the report, signaling an adjustment in its monetary policy to support growth.
