A flexible MPC wary of accommodative turn, but may back measured rate cuts
Monetary Policy Committee (MPC) may deliver interest rate cuts in a measured way and raise liquidity, but it is unlikely to shift its monetary stance from neutral to accommodative as it weighs the implications of the global trade war on financial markets.
Trump-Modi Meet
The mega MIGA, MAGA plans of India's Modi and US' Trump
Trump says India has more tariffs than others
Trump's 'golden rule' for imposing reciprocal tariffs
All members of the MPC said that there is a need to continue with the neutral stance to retain flexibility and to act appropriately as global financial conditions evolve.
RBI executive director Rajiv Ranjan also highlighted the subtle change in the wording of the stance to "...a durable alignment of inflation with the target", implying flexibility in the MPC's approach.
«Given the rhetoric on tariffs, uncertainty in global financial markets and trade policy, we don't see a change in stance but the RBI should provide liquidity to ensure growth is prioritised,» Sameer Narang, head of the economic research group at ICICI Bank, said in a report.
Banking system liquidity has continuously been in deficit since mid-December and has had a daily average deficit of ₹1.53 lakh crore in February, RBI data showed.
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By — Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Basics of Generative AI: Unveiling Tomorrows Innovations
By — Metla Sudha Sekhar, IT Specialist and Developer
Artificial
