RBI seen keeping rates on hold, may flag risks of higher MSP on inflation The Reserve Bank of India (RBI)’s monetary policy committee (MPC) is likely to keep interest rates unchanged on Wednesday as the risk of inflation breaching the central bank’s 4% target again has heightened, say economists. Of the 15 economists surveyed by Mint, 14 expect the central bank to keep the repo rate—the rate at which the central bank infuses liquidity in the banking system—unchanged at 6%. Only one expects a rate hike of 25 basis points. “We expect MPC to keep rates on hold and strike a hawkish tone. We also expect MPC to highlight upside risks to inflation on higher oil prices and potential of sharper increases in MSP (minimum support price) in fiscal year 2019,” said Anubhuti Sahay, head of South Asia economic research, Standard Chartered Bank. “However, MPC in our view would await some clarity on these, especially amid a nascent economic recovery.” In his 1 February budget speech, finance