RBI MPC meeting, macro data among 8 factors that will drive markets next week

In the upcoming week, a major trigger in the domestic market would be the RBI’s rate decision and their commentary on future rate actions. The market is widely expecting a rate hike of 25 basis points. In its December policy meeting, the RBI raised the policy repo rate by 35 basis points (bps) to 6.25%. The CPI inflation has been below the RBI’s tolerance band of 6% for two consecutive months. Analysts are also expecting RBI to hint at a long pause in the next policy meeting, providing direction on future rate actions