The Reserve Bank of India's Monetary Policy Committee is meeting this week, with its interest rate decision due on October 7. Economists widely expect the central bank to hold rates steady as it balances inflation risks against growth. The meeting comes amid global uncertainty, with the US Federal Reserve's rate path and volatile oil prices clouding the outlook.

Most economists expect another 25-basis-point hike in December, which would take the repo rate to 5.75 percent by year-end, according to a TradingView analysis. Barclays expects two such hikes, citing upward revisions to growth and inflation forecasts. The RBI's commentary on inflation, growth projections, and liquidity will be closely watched by bond and currency markets.

The decision will also set the tone for bank lending rates ahead of the festive season, when credit demand typically picks up. The RBI has been cautious about cutting rates too quickly, given persistent food price pressures. Market participants will also watch the central bank's stance on liquidity management.