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Analysts at Rabobank point out that the RBI will meet today to decide on interest rates.
and they think it will be a tough call as there are several arguments in favour of a hold on rates.
Firstly, the free fall of the INR seems to have grinded to a halt.
USD/INR is now trading at 67.1, a full figure below the mid-May peak of 68.4. Secondly,
both Saudi Arabia and Russia have signaled that they have plans to gradually step up oil production levels ‘in the near future’,
which has prevented Brent from breaking through the USD 80/bbl barrier.”
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