India's central bank is likely to keep its policy rate unchanged on Tuesday, following a big cut two months ago, and to sound cautious about the scope for more easing as it aims to meet its 2017 inflation target and braces for a U.S. rate hike.
All 45 respondents surveyed by Reuters last week expected the Reserve Bank of India to hold the repo rate at 6.75 percent, after easing it by 50 basis points at its last policy review in late September.
RBI Governor Raghuram Rajan will also likely reiterate an "accommodative" stance in his statement, in the wake of data on Monday showing the economy grew 7.4 percent in the July-September quarter, faster than China but below the government's goal of 8.0 to 8.5 percent growth.
But analysts are less certain about whether Rajan will cut the rate early in the new year. Although India will comfortably meet its target of keeping annual consumer inflation to 6 percent in January, Rajan is expected to shift focus towards getting it down to around 5 percent by March 2017.