Key Points
The first Monetary Policy Committee (MPC) meeting has already started and economists feel that due to strong economic growth and moderating inflation, the central bank has room to hold rate revisionuntil July...
The current repo rate is 6.50%, which was last updated on February 8, 2024..
"We think the RBI will have to consider the balance of risks between over tightening (given the 'not-too-hot-nor-too-cold' state of the economy) and maintaining monetary policy conditions for achieving reasonably good real GDP growth of at least 7.0%," Barclays economists wrote, mentioning the proverbial "Goldilocks" ideal state of stable economic growth...
In February, one of six monetary policy committee members voted for a cut in policy rates arguing that real rates in India are too high since inflation is seen easing to an average of 4.5 per cent in 2024-25...
The State Bank of India in a note said the RBI will maintain the policy stance as 'withdrawal of accommodation' and the first rate cut will occur in Q3FY25..
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