Key Points
MUMBAI : The Reserve Bank of Indias (RBI) monetary policy committee (MPC) is likely to keep the repo rate unchanged at 6.5% in the policy meeting scheduled between 6 and 8 June...
Most economists expect FY24 inflation to come in lower than RBIs projection of 5.2%..
With uncertainty from weather-related risks (like El Nino) and resilient growth keeping core inflation a tad stickier than expected, we think RBIs inflation forecasts for the next 6-12 months are likely to be changed, albeit not materially," said Rahul Bajoria, chief India economist, Barclays..
Since the last monetary policy meeting, retail inflation has eased to an 18-month low of 4.7% in April, and growth has come in much higher than expected at 6.1% for the fourth quarter of the year ended in 31 March 2023..
. Till last year, the monetary policy was ultra-accommodative, with the policy repo rate significantly below their normal levels and banking system flooded with liquidity," said Pankaj Pathak, fund manager, fixed income, Quantum Mutual Fund..
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