In December, the Reserve Bank of India’s monetary policy committee surprised the markets by leaving rates unchanged when economists had forecast a cut. Much has changed since and this time around the expectation is that the MPC will hold tight while leaving its accommodative stance unchanged.

The obvious reason is the sharp rise in retail inflation in the past two readings. A second reason why the MPC will hold rates is that transmission is still a sorry story. Finally, the spreading Coronavirus epidemic is adding another element of uncertainty. Thus there is every reason to believe that the MPC will choose to retain its accommodative stance.

Stay with us as we bring you LIVE updates from the RBI's MPC meet today.