ET Poll: RBI likely to maintain status quo on key rates
RBI) is likely to keep interest rates unchanged this week as it weighs both robust domestic economic growth prospects amid prickly food inflation and a delayed start to the now-evident shallower monetary easing cycle in the US, where policymakers have already announced fewer reductions next year than indicated by earlier dot plots.
An ET poll of 14 respondents said the central bank's Monetary Policy Committee (MPC) is expected to keep the repo rate unchanged at 6.50% at the conclusion of the panel's three-day meeting on April 5.
This would mark the seventh consecutive time the rate-setting committee is expected to maintain the repo rate at its current level.
All Eyes on Rains
The repo rate is the rate at which the RBI lends to banks. «The policy stance is unlikely to be changed before the August 2024 MPC review, until there is visibility on the monsoon turnout, the sustenance of the growth momentum and the US Fed's rate decisions,» said Aditi Nayar, chief economist, Icra. «Consequently, the earliest rate cut is only likely in the October 2024 meeting.»
A majority of the respondents also predicted a status quo on the RBI's monetary policy stance of withdrawal of accommodation, with several economists saying the central bank would prefer to observe the progress of the monsoon before demonstrating any tilt toward a softer monetary policy.
India's Consumer Price Index inflation was at 5.09% in February, steady versus 5.10% a month ago, latest data showed. While the headline retail price gauge is within the MPC's
