The central bank's commentary on the inflation trajectory will be closely watched. "Inflation is rising and the government has also deviated from the fiscal consolidation path outlined earlier. Clearly, the pressure is building on the RBI to hike rates. However, we expect a status quo in the near-term," said Tushar Arora, senior economist at HDFC Bank. "We believe that the RBI is likely to wait and see how durable these upside risks are." (Read more)