RBI to hold rates at 6.50% through mid-2024, cut seen in Q3: Reuters poll

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Key Points

BENGALURU, Dec 1 (Reuters) - The Reserve Bank of India (RBI) will keep its key interest rate unchanged at 6.50% for a fifth consecutive meeting on Dec. 8 as inflation worries ebb, according to a Reuters poll of economists who unanimously expect the central bank's next move to be a cut...

Despite inflation falling to a four-month low of 4.87% in October, it is expected to remain above the RBI's 4% medium-term target for at least another two years..

All 64 economists in the Nov. 17-30 Reuters poll expected the central bank to hold the repo rate at 6.50% (INREPO=ECI) at the conclusion of its Dec. 6-8 meeting...

Slightly more than half of respondents, 29 of 56, see the repo rate on hold at 6.50% through the middle of 2024, while 22 expect a quarter percentage point cut to 6.25% by mid-year..

Inflation was forecast to average 5.4% this fiscal year that ends in March and 4.8% in fiscal 2024-25, still relatively high in the 2-6% target range even as the central bank starts to cut rates, a separate Reuters survey showed...

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