Reserve Bank of India (RBI) Governor Sanjay Malhotra is announcing its new monetary policy after the MPC review meeting. RBI is expected to leave key interest rates untouched in its monetary policy review with an eye on promoting economic growth as inflation is seen to be under control, analysts said.

This year the RBI's August Monitory Policy Committee (MPC) meeting comes against a backdrop of elevated geopolitical uncertainty including the unresolved West Asia conflict and recurring flare-ups. Global energy prices remain volatile while renewed tariff uncertainty warrants close monitoring.

In this uncertain environment, inflation risks persist, particularly from volatile crude oil prices and potential El Nino-related disruptions to rainfall. Early signs of broadening price pressures also merit attention as inflation expectations have picked up over the past few months.

The country’s CPI inflation is currently well within the RBI’s tolerance band of 2 to 6 per cent and the central bank sees the mid-point of 4 per cent of this range as the target to ensure growth with price stability in the economy. India's retail inflation rate touched 4.38 per cent in June which was largely due to the increase in global oil prices and some imported commodities used as inputs in production turning costlier. The public sector oil companies have largely absorbed the increase in crude prices to protect consumers.