BENGALURU (Reuters) - Indian shares edged higher on Friday, ahead of a central bank decision that could mostly leave interest rates at record lows to support an economy recovering from the pandemic hit. At 0346 GMT, the NSE Nifty 50 index was up 0.53% at 17,884.50 and the benchmark S&P BSE Sensex rose 0.49% at 59,969.92. The blue-chip Nifty 50 and the Sensex have risen nearly 10% since the central bank’s last meeting in August and have scaled record highs on easing concerns about a third wave due to rapid vaccinations. Traders will likely watch out for RBI’s thinking on liquidity withdrawal as surplus cash in the banking system has topped 10 trillion rupees ($134 billion) in recent weeks. Some analysts have signalled a slim chance of the monetary policy committee delivering a token increase in the reverse repo rate, even as it keeps the repo rate unchanged at the 4% level it has been since May last year. All 60 forecasters in a Reuters poll said they see no change in the repo rate. “While the RBI may not shock the system with a reverse repo hike, the policy will be used as a lever to prepare markets for a gradualist approach toward normalization through both communication and action,” Madhavi Arora, lead economist, Global Financial Services said in a preview note. Meanwhile, shares of Tata Consultancy Services were up 0.85% ahead of its September quarter results. The IT behemoth kick starts the earnings season, which is expected to show signs of recovery for Indian companies.