The central bank is expected to maintain status quo on repo rate in its policy which will be announced today, said Chetan Ahya, of Morgan Stanley. However, he said that there could be a raise by RBI in August.

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"We expect total of three rate hikes by RBI, but shallowed ones," said Ahya.

The central bank, since January 2014, has either reduced the repo rate or maintained status quo.

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The six-member monetary policy committee is meeting for three days, the verdict of which will be announced today. This is the first time the committee has scheduled the meet for three days instead of two days.

Ahya further said that India's core inflation is likely to be at 4.3% by March 2019 and added that the "under-lying inflation trend in India has been fine."

On global front, Ahya said that there will be some challenges for the growth to continue.

"Fundamentally, dollar is expected to remain weak due to widening in US current account deficit," he said.

Talking about emerging markets, he added, "Now when we take all the large emerging markets, bulk of them are doing fine on policy mix."

First Published:Jun 6, 2018 8:51 AM IST