Reserve Bank of India is likely to keep the benchmark repo rate unchanged at 7.25 per cent in its policy review meet next week, a DBS report says.
According to the global financial services firm, besides the impact on markets, the Central Bank would take cues from the US Federal Reserve this week for its rate trajectory.
"The RBI meets next on August 4 and we expect the benchmark Repo rate to be held unchanged at 7.25 per cent after cumulative 75 bps cuts since January 2015," DBS said in a research note on Tuesday.
The report noted that, if the official commentary signals a start to the US rate hiking cycle later this year, "it will affirm our expectations that the RBI will maintain a prolonged pause on the rates front".